Things You Might Be Wasting Workplace Funds On
Wasting Workplace Funds
The current economy is quite unpredictable and more competitive than ever leaving the organizations to be on the lookout for wastage in the workplaces. In procurement, when done properly it reduces costs which can put a strain on the budget. Some of the ways you might be wasting workplace funds on and suggestions on how they can be avoided include:
Cut down on paper use
In the US, 700 billion of sheets are purchased yearly. It is imperative that you look at some of the ways that will result in your workers using emails more often in order to cut down on costs. Send PDF versions of the documents over email. If you have to use paper, try to reuse sheets or print on both sides.
Too many departmental purchases
Unnecessary departmental purchases are a costly practice that results in excessive inventory supplies and duplication of the business spending. Consider consolidating purchases under the procurement department which should counter check with what you have in stock before making a purchase.
Prioritizing price over quality
The urge to make purchase at cheap prices is hard to resist. However, to avoid unpredictable cots in the long-run, match value with quality by considering whether the supplier can give discounts on bulk orders of higher quality
Failure to take advantage of technology
Technology such as procurify will benefit the company in the long run as they will you ensure that there is operation stability in uncertain economy.
Poor project management
Introduce team management software that will keep track of the number of employees and enable them to see what their peers are working on to avoid job duplication.
Too much outsourcing
These personnel may not be familiar with the culture in the organization leading to errors that can cost the company money. Preferably, try restructuring your workflow and pay less priority on hiring.
Playing favorites with suppliers
Avoid shutting the door to other providers due to loyalty issues as you can miss out on deals that can improve the performance of the company and help your budget.
The high rate of absenteeism
The operations of your business can be greatly affected if most of the employees fail to report to work because of health issues. To curtail this, introduce a medical benefits package that is tailored to the needs of your employees. You should examine the probable cause of the illness and determine if the conditions in the workplace such as poor ventilation, asbestos tiles etc. can contribute to it. You should also check if morale issues can be a contributor to the absenteeism. If these signs are found, take measures to eliminate them.