According To Staples Your Purchasing Departments is Out-of-Date?

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According To Staples Your Purchasing Departments is Out-of-Date?
Staples Survey Shows Purchasing Departments Need to Keep Pace with Rise in Telecommuting

FRAMINGHAM, Mass.–(BUSINESS WIRE)–The overwhelming majority of employees believe telecommuting is good for both themselves and their company, but most organizations are not budgeting appropriately for telecommuters, according to a recent survey of procurement officers by Staples Advantage, the business-to-business division of Staples, Inc.

Two-thirds of those who responded say they do not take telecommuters into account when planning their organization’s purchasing budget. The result is a lack of consistency in telecommuting purchasing, including which products are purchased, who is purchasing them and how much is being spent.

“For many companies and employees, telecommuting makes good business sense,” said Neil Ringel, Executive Vice President, Staples Advantage. “However, if organizations don’t budget accordingly and provide appropriate oversight, there is significant risk for rogue spending and inconsistencies in the tools provided to telecommuters. Organizations can reduce their overall spend with up-front planning, streamlined purchasing and procurement oversight.”

More than half of the procurement professionals surveyed – 59 percent – purchase products for telecommuters, while 33 percent say telecommuters purchase products out of their own pocket. Less than half of those procurement professionals work for companies that provide reimbursement.

Telecommuters most often request office supplies (44 percent), technology products such as keyboards and monitors (17 percent), Internet and phone service (16 percent). They also request IT services, furniture, copy and print services and cleaning supplies. There is an opportunity for procurement to negotiate better prices for goods and services in these categories to maximize savings.

To maintain consistency and oversight of telecommuter purchasing, procurement professionals should consider the following tips:

Ensure all telecommuter purchases are routed through procurement.
Provide a budget for telecommuters to purchase needed items and services.
Establish standard catalogs or product lists that are pre-approved for telecommuters.
Provide standard start-up kits of items and services when employees begin telecommuting.
Have a clear understanding of their company’s pool of telecommuters, recognizing that the percentage is likely to rise, which means they should plan for and budget accordingly.
Develop comprehensive reporting to better measure expenses against budgets.

About the survey
Staples Advantage conducted a survey of more than 200 chief procurement officers, procurement vice presidents, directors, managers and category managers representing a variety of industries – manufacturing, finance, education, government, healthcare, hospitality, insurance, retail, and utilities. Full executive summary with more detailed findings can be downloaded here.

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November 13, 2014 at 11:54 AM