3 steps to control your costs
As a company, do you want to manage your costs as simply and efficiently as possible?
When it comes to buying products and services to support your business, some solutions can be easily set up. At Lyreco, we help you reduce your costs; discover our 3 simple tips to better control your budgets and limit losses in your business areas with our Strategic International Account expert Helen Smith.
1. Rationalize and standardize your purchases
Combine your volumes to save costs
As a client you may be purchasing many different items from the same category. By analysing this expenditure and identifying products ranges to rationalize, you could be able to condense multiple products down to just a few, making these become cheaper when bought in larger quantities.
Standardize your products across all your markets
Lyreco strives to offer an international standardization of products in order to support your cost saving across multiple markets. Our 4,000 internationally available SKU’s are same code, same description and same product across all our subsidiaries. Which means that as Lyreco customer, wherever you are, from the UK through Hong Kong to Austria, you can still use the same pen!
Last year one of our clients achieved reductions of 19% and saved €109 670 on stationery items that were logically grouped together. A large number of the Stationery items were unique and fell under miscellaneous subcategories.
Therefore, as their new supplier, we suggested further opportunity to look at order volume and frequency patterns to achieve future savings at a meticulous level.
2. Monitor your cost reduction
Your activities need a continuous improvement plan and a regular monitoring to improve your budget management.
At Lyreco, our Account Managers provide you with ongoing reports and summaries of your expenditure.
Lyreco has more account managers than our closest competitors combined which allows us to provide our clients with a close, personalized follow up of their cost reduction.
Switch to Tail Management
Indirect spend in a lot of large organizations typically accounts for only 20% of business expenditure yet it can represent up to 80% of the supply chain.
However, these spends can be difficult to track; it takes a whole strategy to succeed in allocating resource and managing these costs well.
3. Reduce your tasks and process costs
In order to reduce costs that are linked to your tasks and activities, you must focus on the direct savings, but mostly on the hidden costs that represent the most important part of your total cost of ownership.
Thanks to simple actions, you will be able to turn them into a thoughtful efficient process.
Scroll down to see how Lyreco helps you to reduce your process costs
How does Lyreco help you reduce your costs?
This is a fundamental part of Lyreco’s account management proposition at Lyreco. With the help of your dedicated Account Manager, it only takes 3 steps to refocus your purchases on what you really need:
- Measure your core list expenditure
- Ensure that it represents the majority of purchases
- Add/remove products where necessary
As part of the Account Development Programe, Lyreco helps you to:
Identify opportunities to switch from branded lines to Lyreco brand
Forecast potential savings based upon historical usage
Average order value (AOV) or order frequency has a major impact on both customer and supplier. Lyreco strives to support and develop it through various initiatives such as :
Monthly reporting by cost center
A follow-up for cost centers with lower-than-average AOV
Ranking and incentives for high performing sites
Option of minimum order value for online orders
Auto-save function online to allow customers save unfinished order and submit it when they finalized
The best way to ensure cost reduction is to make people aware of its importance. In order to help, support and, if necessary, direct users towards best value products, Lyreco helps you to implement various controls and restrictions, including:
Defining a core list items
Highlighting products, including best value items
Preventing users from ordering certain products
Setting maximum spend levels per order/month
Automatizing the switch from one item to a best value one
Making mandatory to send the order to an authorizer for approval
Want to know more?
Whatever your needs for workplace supply, you can find on our webshop all your favorite products and brands: office supplies, paper and cartridges, catering and coffee, green ecological products, detergents and cleaning products, Personal Protective Equipment (including masks), furniture.