How a Centralized Buying System can Benefit Your Organization

Posted by Crown Battery on Feb 9, 2017 10:29:14 AM

 

 

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Company expansions often mean multiple locations and divisions with varied supply needs for each. Add a business acquisition to the equation, and now you have multiple purchasing departments that may or may not be working in tandem. For any organization, large or small, duplication of efforts or roles means added expense. How can your company avoid this?

 

Centralize your Purchasing System

Developing a centralized buying system means that all areas of a business funnel their purchases through one common point. Centralization presents an opportunity to reduce material handling costs at a variety of levels, for example, via increased purchasing power and lower product costs. However, centralization during expansion/consolidation activity also presents opportunity for planning and purchasing inputs to lose sharpness. Add an ally, like Crown Battery to the mix to help you set up the structure, and the benefits can be compounded. When multiple locations are acquiring batteries and chargers for equipment, it costs a company more in duplicated effort. But, we’re getting ahead of ourselves. Let’s review the key advantages of a centralized purchasing system before we discuss how Crown can help.

 

Advantages of a Centralized System

Reduced overhead.

By having a single point of purchasing for your battery and charger needs a company gains by way of eliminating the duplication of efforts from staff with complete knowledge of what each location needs. Crown Battery is a tentacle of your organization that keeps the pulse of each facility's current and future needs. Further, staff can focus on minimizing costs instead of spending time on routine inventory management or one-off purchases.

 

Reduced cost.

When an organization can make purchases in bulk over individual components, they save operation costs with greater discounts. The discounts extend beyond component costs with shipping and handling of repeated smaller shipments. Crown Battery is skilled in the identification of asset utility during consolidation and in making recommendation for proper equipment to meet operational needs.

 

Reduced effort.

Most companies employ the efforts of inventory management systems which have become a huge gain, but with a decentralized purchasing system, there is still additional energy needed in multiple inventory records, multiple points of contact, and various relationships to maintain with suppliers. With a single purchasing system, simplified documents, reduced contacts, and stronger relationships are gained. Crown Battery can be a perfect partner in helping you set this up.

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