The rise of unauthorised purchasing
Almost one year into the Covid-19 pandemic, it is safe to say that firms’ supply budgets have been spiraling out of control for some time — and those responsible for purchasing have little to no idea about how to get them back on track.
With staff working from home for either all or the majority of the year, an estimated 40% of employees are turning to non-authorised sites for supplies or services for the home workspace and then claiming back on expense forms.
With each of these requests costing, on average, £27.20 to process — and that’s not even taking to account the extra costs related to quality issues and employee time spent scouring websites for items — it is no wonder that 90% of businesses have reported spend leakage in the past 12 months.
Pressure builds on businesses in 2021 to deliver savings
Factor in Brexit and all of its ramifications for business operations to this equation, and the result is that organisations are under huge pressure to reduce costs, increase spend visibility, and take control of their budgets to deliver long-term savings.
So, what is the solution? Just like economising at home when the belt needs to be tightened, businesses should reevaluate the supplies that are being purchasing, and identify where cost savings can be made.
The rise of the ‘own brand’
The rapid boost in popularity of discount brand supermarkets such as Lidl and Aldi is in no small part due to their own-label ranges’ ability to deliver quality and value at a greatly reduced cost.
The takeover of discount grocery retailers in the UK has caused the stigma surrounding private label products to be lifted, and for in-house branded items to become synonymous with good quality — think of the ‘Taste the difference’ range at Sainsbury’s.
And this thinking doesn’t just apply to food purchases – recent trends in supermarket beauty categories have seen a rise in demand for home-label products, such as Aldi’s ‘Lacura’ range. This market share is expected to increase by 17.2% in the next five years as savvy shoppers swap a larger range of choice for guaranteed savings at the checkout.
In March 2020, the market saw a 20% rise in the purchasing of overall own brand supermarket products as the initial lockdown set in, however, even without the effects of Covid-19 on shopping habits, the popularity of these products has been steadily rising in recent years — gaining 42.7% of market share in 2020, up from 46.8% in 2012.
Why apply this model to business?
Research indicates that 74% of organisations will be making home or hybrid working a permanent fixture beyond Covid. Therefore, it’s vital to assess current purchasing methods and consider building own brand product alternatives into the overall procurement strategy to help make those savings and regain budget control.
Whether purchasing office supplies for the workplace or for the home, businesses need to consider own brand alternatives to help squeeze those cost-savings even further at a time of economic recession.
Where do I start?
What if your colleagues — wherever they may be based — could order from a pre-determined list of high-quality products at extremely competitive prices? This solves the issues of spend leakage, and reduces the cost of supplies, encouraging even more savings.
At OfficeTeam, our 5Star range is synonymous with great value. In fact, it’s the brand of choice already for many of our clients thanks to its reputation for great quality, at a discounted price.
The 5Star line of products is continually assessed and evaluated to ensure that it is fit for purpose for the modern workplace – with new items added regularly. From home office furniture and technology, to Covid essentials, you’ll find everything you need.
Unlike other home-label ranges, variety is never an issue and quality is never compromised — meaning that it can meet your requirements, every time.
And, if you’re looking to be more environmentally conscious in your purchasing, our new environmentally sustainable range of 5Star products will help you to go green at a reduced cost.
Switch and save with 5Star – take our audit to find out how much your business can save today.
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Make the 5 Star™ switch, paint the workplace red and save on your office supplies.