#5 Creating too many purchase orders
It’s not unusual to find a facility that’s placing several purchase orders per week or even per day with the same vendor. This gets very pricey when you consider that it usually costs about $100 in administrative costs to produce 1 purchase order. That’s not counting the shipping costs associated with smaller orders that do not meet the minimums for free shipping.
To reduce your number of orders, coordinate purchasing activities within the facility. You can do this by implementing a simple communication system among staff members, such as dry erase boards or logbooks, so that everyone knows which supplies everyone else needs, and how long you can wait to order them. If current orders can wait a few more days, you can then place a large order involving as many products as possible.
Example of savings: A surgery center cut its yearly volume of purchase orders by about two-thirds, from more than 1,000 to only 312, saving at least $68,000 per year.
If you are a medical/surgical facility decision maker that spends more than $250K a year in medical supplies and would be interested in seeing how much we can save your facility at NO COST to you, please CLICK the link below that takes you to a quick form and then links you my calendar. Then, choose a time most convenient for you for your NO COST 30 minute screen share assessment in which I will show you $50,000-$500,000 in savings SPECIFIC to YOUR facility!