All organizations want to save money. That can mean looking for deals, comparing prices or running to multiple stores. While it may seem like a good idea to designate an employee to “go shopping” or to use multiple vendors for the lowest prices, have you considered all the “hidden costs?”
At Craft, we call this the “Iceberg Effect.” The cost of any item is more than the invoice price – the tip of the iceberg. The truth is you have soft costs (underneath the water line) associated with every purchase or acquisition. When you think about the cost of drive-time, plus having an employee miss more mission-critical work for an hour or more, you’ve added to the cost of the items you purchase.
It is estimated that companies spend approximately $50 to $150 per order in soft costs to acquire a product. This product could be anything from a box of paper clips to an executive desk. So how can you save time and money while improving productivity?
Our My CraftWorks™ Program excels in addressing the “Iceberg Effect” in relation to the procurement cycle. As part of our approach, we look at all facets of acquisition cost that impact your organization. This includes more than just the product you buy and the price you pay for it. And it’s more than just one-time delivery. It encompasses our expertise which enables you to make solid decisions about the products and the services you need. It also includes our services such as inventory management, assembly and installation, and online tools that help you smoothly and effectively run your operations. Ultimately, this gives you time to focus on those activities that are mission-critical to your organization.