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Most companies concentrate their cost
saving efforts on shopping for a lower price on office
supplies. However, the actual money spent on supplies
is less than half their total cost to your organization.
 Industry
studies indicate that the steps associated with processing
an order account for 60% of the total cost of managing
and procuring office supplies. The Procurement Process
and Total Cost of Supplies wheels shown to the right
illustrate these points. Nickerson Business Supplies
is uniquely able to provide you with quality services
that will dramatically reduce both your processing and
product costs.
If you review your average office supply
invoice, it is often for only $50.00 to $100.00. As
underscored by the various quotes below, the cost to
create an order often exceeds the actual cost of the
product.
Purchasing Today, June, 1997. "Experts estimate
that it costs companies between $100 and $150 to process
every paper-based purchase order, regardless of whether
it for a $500,000 piece of operating machinery or $30
worth of paper clips."
 Purchasing
& Supply Management, 6th Edition, Text and Cases.
"Most firms estimate that it costs between $50
and $150 to process a formal purchase order. For many
small purchases, the cost of the paperwork exceeds the
cost of the item purchased."
Purchasing & Materials Management,
5th Edition, 1995. "Although the variable acquisition
cost per order varies widely among firms, depending
on the specific cost inclusions, today the range appears
to run from approximately $40 to $100 per order."
Computer, Business Systems & Office
Products, November, 1994. "With the administrative
cost of processing a purchase order ranging from $175
for simple orders to $800 for complex purchases, the
volume of transactions at large companies demands a
more efficient approach."
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