Download 3 years supplier spend from your finance system –

• Spend fragmentation – Are you buying the same goods/services from different suppliers? can you move to one supplier, leverage the spend and negotiate better rates?
• Top Suppliers – Do you have Significant spend with one supplier? Check if you have a contract, look to negotiate better rates. If there is no contract, go to market and obtain 3 quotes, include the maximum you will pay (include your reduced amount) to speed up responses and set expectations.
• Low Spend – Do you have lots of low value spend which goes unchecked? Implement and communicate a policy to prevent this by increasing approval levels.
• Collaborative Buying – Are other charities using your suppliers? Contact them and create a plan to leverage your collective spend. Then negotiate better rates. Win-win for all!

Working with supplier

• Error Checking – Do you have suppliers, with lots of small spend? Ask them to reassure you and check there are no billing errors. This can often deliver quick small but valuable savings.
• IT Spend – Do you have lots of software licences? Ask you suppliers to review the number of active users and switch off the others. If they are reluctant ask a competitor to do this for free.
• Subscription spend – Do you have lots of subscriptions? Review all your subscriptions. Are they all still required? Switch off any subscriptions not being fully utilised, often generating an instant saving
• Standardisation – Do you have a wide variety of options available to your team i.e. Stationary? Reduce the range and look for better value or use a portal
• Stock – Do you hold lots of stock on pallets? Ask Suppliers to do an audit and remove/reduce/recycle for savings. If they are reluctant, you can do internally or ask a competitor
• Energy usage – Have you completed an energy audit? Request a visit often free of charge from an energy provider to provide advice on how to reduce your bills.

Change Buying Behaviour

• Communicate – Does your team know how to buy? Give clear guidance on how to procure and purchase goods and services, with relevant thresholds for risk and value
• Alternative Suppliers – Do you consider smaller or diverse suppliers? Contact suppliers that align with the charity’s social goals, often achieving both cost savings and mission alignment
• Supplier Database – Do you have an Approved Supplier List? Build and Maintain an updated list of pre-approved suppliers to share with your team. Build closer relationships with these suppliers and lean on them for support when cost cutting
• High Risk High value? – Do you have the expertise inhouse to buy and ensure value for money? If not reach out to suppliers, other charities or industry experts. Don’t waste your own time and resources

At Novo-K, we help organisations streamline procurement, optimise supplier management and achieve cost savings with ease. With expert support and innovative tools like BuyingStation, we make managing your procurement straightforward and effective.