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Hidden Costs of Purchasing

2008 August 22
by admin; 2,735 views

Here at Alps, we are big believers in saving money (aren’t you?). We frequently tell new customers the value of purchasing from one source can be much larger than just initial product savings. We believe this type of supply chain management is not only the most efficient way of doing business… but in the future, it will be the only way. Well, it seems we are not alone in our thinking. We stumbled across a white paper from Anixter, a supply chain services communication company. There was a lot of great information in the document, but a few things stood out to us that are some interesting statistics.

First, according to a case study conducted by the group, there is a $550 savings when purchasing all of your products from one supplier (click on pictures below to enlarge). Also, an average of $7.17 was saved per order when the supplier provided automated tracking information. And finally, ordering products with multiple P.O. numbers can cost $50 in hidden costs per P.O. number.

anixter case study screenshot anixter case study screenshot anixter PO process screenshot

So, while we are obviously firm believers in this business model, we wanted to share with you the statistics that prove our point! If you agree, disagree, or just want to start a discussion about this topic, add a comment in the comment section below.

anixter case study screenshot anixter case study screenshot
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