Too many businesses purchase duplicate hardware or preemptively decommissioned hardware well before the full value has been extracted from it. Other times, they will blame workflow inefficiencies on hardware when solutions exist to make the most out of the equipment they already have. One of the best methods of procurement cost reduction is to realize when these unnecessary events are occurring and to sidestep them with a more practical, efficient and cost-saving solution. Here are some ways this process can be done.
Optimizing Maintenance Cycles for Procurement Cost Reduction
Equipment that encounters higher monthly repair costs than the projected cost of new equipment may not have hardware to blame. Instead, your business may be utilizing a non-cost-effective servicing model that sees little returns in the value it adds. Under such a program, even brand-new equipment will rapidly become inefficient over time, leading to a vicious cycle.
Avoid the cycle by auditing repair and maintenance costs and then determining if there is a more optimal service method available. Can warranty repairs be enjoyed longer if recommended maintenance schedules are followed? Can periodic inspections eliminate unnecessary repairs before they require expensive labor or parts? Are there repair services in your area that can develop a cost-effective contract for you, such as offering a set fee for typical repairs throughout the month?
Considering options like these can help prolong the useful life of equipment while preventing unneeded procurement costs.
Investing in Better Hardware
Sometimes, hardware issues have less to do with the tool itself and more with how that tool is used. For instance, telecommunications servers can experience high latency and unnecessary downtimes if the software helping run it does not optimize connection speeds through efficient code or sensible routing patterns. Likewise, a somewhat old model of printer can become significantly more powerful and usable given the right type of print management software tool.
Managed print services can help tremendously with the latter, including helping you dramatically reduce the amount of raw materials like paper and ink as a result of creating fewer waste copies.
Utilizing Duplicate Stock or Underused Hardware
Having a printer go down on a busy floor does not necessarily mean that floor needs a brand new printer. Instead, your organization can look on-site for other available equipment that may be put to better use as a replacement rather than where it is currently located. In the case of a printer, perhaps customer service barely uses their industrial unit and can replace it with a more simplified desk unit from elsewhere?
Planning ahead by taking inventory of your current hardware can allow you to strategize in advance of such problems. You can account for each equipment piece in a spreadsheet and develop a system for rotating and replacing aging hardware based on prioritization.
Reducing Procurement Costs with Cost Avoidance Consulting
Cost recovery consultants like Freedom Profit Recovery have mastered the above techniques and more when it comes to saving our clients money. We consider every possible angle and choose the option that benefits our clients most from a cost-savings standpoint while maintaining or perhaps even improving productivity.
You can learn more about how we help your business save money by Document visiting our cost recovery services page.