The Case For Integrated Purchasing

YOU GET WHAT YOU PAY FOR

One of the services that a tech provider provides is—procurement.

Having your tech provider handle procurement provides several benefits.

Here are the 3 benefits when procuring through your tech provider

1—They know your environment

This one’s easy.

They know your environment.

And as a result…

They know what needs to be spec’d when you need something new.

2—They procure faster

On occasion, I will work with a client who likes to procure stuff on their own.

So I specify what is needed.

I provide them the information.

And then they assign a person on their staff to collect quotes.

Then, they compare all of the quotes.

They always go with the lowest quote.

Then, the equipment comes in.

It sits around for a while.

And eventually gets installed

It’s not ideal.

3—It costs less to use your IT company

This one may come as a surprise.

But more often than not.

It really is cheaper to use your tech provider.

That’s because you’re not burning staff time on shopping, ordering, shipping and receiving.

When you look at how much time is spent in the procurement process the DIY mentality loses every time.

That’s because the effort expended almost always exceeds any cost savings.

The psychology of purchasing

So with all this, you might ask.

Why do companies want to buy stuff themselves?

Well…

Because they want a good deal.

Because they want the lowest price.

Because they want to feel in control.

And while all of these are valid reasons to want to do procurement in-house.

For a small business…

It’s still not typically the best path.

Some quick numbers

Let’s say you need a new printer.

So you send a request to your tech provider.

They send you a quote for a $700.00 printer.

You sign the quote and 3 days later the printer is installed.

Compare this to the DIY model

You send a request to your tech service provider.

They send you a quote for a $700.00 printer.

You then take this quote and send it to another company to quote.

You also go online and compare this to Amazon and other outlets.

Let’s say you make $50K per year.

1 hour to spend on this effort costs you about $25.00.

You find a printer on Amazon for $650.00

And so you buy the printer.

It comes in 3 days later.

You sign for the printer and move it to the area where you’d like it installed.

You then contact your tech provider and they schedule someone to come out.

A technician comes out to install the printer and notices it’s missing a part.

So the technician puts the printer back in the box and lets you know you’ll need to get it exchanged.

Just one error in the order process and the printer you saved $50 on isn’t a savings.

Let’s say the printer was ordered correctly.

Even the time you’ve spent sourcing, ordering, and handling the task is time taken away from someone’s job.

Perhaps my example is flawed

Perhaps you’re fine thinking you’re saving a few bucks here and there.

But you’re really not.

It’s costing someone somewhere.

To procure or not procure.

That is the question.

Some tech providers provide procurement services.

Some do not.

It just depends on their service delivery model.

For me…

I’d rather have someone handle things for me at a fair price.

I’ll even negotiate the discounts upfront if needed with a vendor.

Having worked with purchasing departments for years with organizations of all shapes and sizes I can tell you this.

Unless you’re doing a sh-load of tech purchasing.

You’re better off working with a tech provider who provides procurement services.

If you’re a fan of efficiency and speed.

And saving money.

It’s the way to go.

To the office managers of the world

If you’re the person at your company who does the tech purchasing.

Working with a procurement service lets you focus on your core responsibilities.

Your boss will appreciate you more for getting stuff done.

Then for saving them a few faux dollars per month.