Office Supply Spend Management for Businesses
With office supplies category managers having pressure to rationalize and to bring efficiency in the procurement processes, accounting the office supply spend remains as a key area to address. Global category spend on office supply expenditure is estimated to be in USD in few millions incurred by any large buyer. The significant percentage contribution of office supply items in the overall organization expense items makes it more important and must have for bringing visibility in the category spend management. The article provides insights on the ways to achieve efficiency in managing the office supply category.
Spend analysis requires each category spend mapping vis-vis normal business expenses like salary/ wages, equipment, taxes etc. and systematically tracking, recording and monitoring the category expenses for business efficiency, improved profitability and tracking large portion of spend. It can be defined as a process to identify current spend of an organization on various categories such as office supplies, marketing, print etc. and to analyze how much is being spent, type of products being procured, demand from the various office locations and the list of incumbent suppliers for the products.
Although factors such as price stability of office supplies products, technological advancement, favorable supplier landscape seems favorable for buyers to have a check on products ordered and overall value of the contract. However, to reap the entire benefits of managing this category, buyers need to pay more attention to other areas also for transparency on account of incidents like paper wastage, theft, and improper sourcing. Traditionally, these have been the areas, buyers been ignoring due to less spend and less business criticality. These if managed efficiently can uplift the category to the next level of maturity. Office supply spend management undoubtedly forms an integral part of overall management of organization.
Author: Mridula Sharma
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