Bedfordshire Chamber of Commerce in association with Auditel, the UK’s leading cost management specialists, has been working to bring to its members a totally new way of buying business supplies, traditionally an area of essential business expenditure troublesome for many firms.
Thi
s article announces a Group Supply Deal and managed service, describes the benefits and how members can participate for free.
Business supplies: A category rife with difficulty
It’s a sad fact that smaller spending organisations are disadvantaged in the market as the industry structure deems them simply “too costly to serve” with account management. Sales margins tend to be maximised through practices that unfortunately are all too often exploitative, opaque and reliant upon inertia. Growing businesses cannot benefit from loyalty: I’m afraid it’s an area in which size is the only thing that matters!
Further, low value purchases seem small but that carry significant “non-product” costs: this means that items priced at £4 can end up costing you £9 once you factor in purchasing, distribution, storage, accounting, pilferage, obsolescence and waste. The good news is that in an area where purchasing is often fragmented and carried out by hard-pressed staff, the business benefits (financial and associated time savings) from a few small improvements in the management and control can be really considerable.
Moving up in scale, even with dedicated in-house resources, the complexity of purchasing can be a barrier to effective expenditure management in this area. With our specialist tools and process we are routinely finding significant savings for clients (40% is not uncommon) who otherwise run a “pretty tight ship”.
Auditel, Cost Management Specialists are working with Bedfordshire Chamber of Commerce to develop a number of innovative services for Members, of which this is the first.
“Growing organisations are paying over the odds for items that most businesses need and buy from multiple sources. They need better prices, streamlined processes and better support to improve expenditure control, so it made perfect sense to look for a way to transform how Member firms purchase their essential business supplies that addresses these market weaknesses and helps smaller organisations, in particular, to punch above their weight” – Ron Yellon, Auditel.
The Chamber “Group Supply Deal” and “Managed Service” key features
Compelling benefits for SMEs spending £1,200 – £250,000 p.a. and upwards on business supplies:
- Superior pricing than that available elsewhere (across a basket of purchases)
- Streamlined ordering via the Member’s own portal
- Consolidated buying
- Account management support
- Larger accounts are not forgotten
- Benefits over “buying groups”
Superior pricing than that available elsewhere (across a basket of purchases): We have used our market strength and knowledge at Auditel to negotiate a Group Supply Deal for a host of items like office supplies, print consumables, janitorial supplies, catering and hygiene supplies, and many more. We benchmarked prices at larger “out of reach” volumes (£250,000 pa spend for 800 core items), and then undercut these significantly.Then we added price stability to give budget certainty and lower risk.
Streamlined ordering via the Member’s own portal: Once set up (with 24 hours), and with their “favourites”, costs will reduce, ordering will be speedier. Organisations will be better placed to control purchasing.
Consolidated buying: One ordering portal, rationalised delivery from one of the UK’s largest distributors, one account manager and one monthly invoice to pay across a range of categories means streamlined processes, time savings and freed up resources.
Account management support: Usually the preserve of larger corporates, Members are able to get best value and meet specialist or changing business needs. Specialist pricing opportunities are available to ensure where possible that all members are supported.
Larger accounts are not forgotten: Growing customers will be migrated onto bespoke corporate deals maintaining the relationship – so success benefits all participants. And of course, Auditel’s established cost management service and processes – combining forensic analysis of spending, market tendering & decision support, implementation and ongoing monitoring which together ensure that cost management efforts are sustainable – is there on a consulting basis for members that need it.
Benefits over “buying groups”: Having looked at these in the past we knew we could do a lot better. Maintaining independence from a single supplier was important; as well as staying flexible i.e. avoiding the need for Members to make advance or upfront commitments, and of course providing a service rather than a log-in and be left solution
“Everything we’ve done has been set in a way that provides the best service, quality and value to growing clients needing a long-term solution” – Max Kent, Head of Business Supplies, Auditel.
Come on board
The Chamber’s Group Supply Deal is now live and ready for orders and Members can access the pricing via the ordering portal (albeit in its first incarnation) which will be showcased on the Members’ benefits’ stand at the Chamber’s A.G.M on Thursday, 10th December 2015, at the Rufus Centre, Steppingley Road, Flitwick, MK45 1AH from 4pm.
All Members of Bedfordshire Chamber of Commerce are encouraged to get on board. Initial pricing has been established and we want to make sure it’s right, and to grow this innovative service together. We are looking to promote adoption, support its use within firms and encourage feedback.
Ron Yellon, Auditel | 01234 865869 | ron.yellon@auditel.co.uk | www.auditel.co.uk/ronyellon
(This is just one of a number of ways the Chamber is working with Auditel to develop innovative services to help Members build a stronger platform for growth. Others are under discussion for the new year).