Do you ever buy multiple versions of the same thing?  If so, you’re losing the power of your purchasing dollar.

You might have a list of standard items, such as toners, and paper and pens, that the company regularly purchases.  But if every division or business unit buys its favourite brand or style, then you might find that your budget has been blown out of the water.

Why?  Because you’re forcing your supplier to spread its pricing risk over a broader range of products. The supplier can be far more competitive if it focuses on a smaller range.

So if you stick to a smaller basket of goods – make three types of pens available, instead of 20 – you get better control on what you’re spending, and you’ll get a better price on those three pens.

It’s also important to standardise this list of products so that all team members are ordering from the same list. Then if you have multiple locations, standardising and rationalising the products on offer will mean that everyone is ordering from a consolidated list, adding once again to your buying power.

This strategy also means you can carry a smaller range and less stock, thereby freeing up office and storage space within your premises.