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BUYING POWER
Purchasing Assistant™
provides members with aggregated buying
power, offering direct
access to national account pricing for thousands
of
products sold by a selection of vendors.
Purchasing Assistant™ saves money by
negotiating margin limits on
the spread between the dealer's cost of goods
and the program's retail prices.
As a result, hard dollar savings
are greater (in terms of total dollars spent on an annual basis), than individual
companies can negotiate on their own.
Each month participating vendors submit electronic copies of invoices
which are then compared to the program's
prices. Any discrepancies are identified, brought to the attention of
the vendor and net credits are returned to the client.
Savings in
soft dollars
are significant. The administrative costs of processing a manual
requisition, inputting it as an order on a vendor's shopping cart
program, tracking the product's receipt, obtaining the order's paper packing slip,
and then communicating all the information to an Accounts Payable department
is enormously time consuming and expensive.
Generally this process
requires between 3 to 5 employees, over a time period in excess of 7
business days.
Add to this process 'maverick'
orders that arrive unannounced, and the total costs of procurement grows by
tens of thousands of dollars.
By employing Purchasing Assistant™
manual
activity is significantly reduced and both management control and employee
productivity are increased. Soft dollar savings become hard dollar profits.
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Purchasing Assistant™
represents
the buying
power of thousands of
system users, employed
by the
business community and non-profit
organizations. |
