Specialty Laboratories used purchasing systems and methods common to most companies to obtain supplies. They observed:
High Consumption - Little or no accountability for office supply usage and poor management of office supply inventory. Monthly spending exceeded $2,100 for the main office of 225 employees. A detailed inventory of the supply room revealed a total of approximately 200 different office supply items or SKUs (stock keeping units). This inventory consisted largely of overstock from orders accumulated over time. In total, the contents of the supply room amounted to more than $3,000 of excess inventory.
Inefficient Processes - The purchasing team spent approximately 2 hours per week, per department on orders for small quantities of supplies. For the 10 departments served, purchasing was spending a total of 20 hours per week on order processing. There were three people in charge of distributing the supply orders resulting in an estimated 2.5 hours spent per week per department or a total of 45 hours a week devoted to the management of office supplies. Specialty Laboratories evaluated and selected Nexiant Smart Inventory® Manager and Nexiant Select POU technology to address the needs of the main office location. Specialty Laboratories recognized that the combined solution drove accountability for office supply usage to the end user and significantly reduced the cost of office supply procurement.
Using Nexiant Smart Inventory ® Solutions, Specialty Laboratories reduced consumption of office supplies by 74% and achieved a procurement time savings of 89%. The hard dollar savings represent a 204% ROI for the technology solutions provided by Nexiant.
