cost reduction

Strategic Approach to Cost Reduction

Did you know that labor costs often account for more than half of the total costs for processing supplies? AAA designs solutions to significantly reduce these labor costs, as well as your product costs.

production and processing pie chart

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Reducing Product Costs

AAA has billions of dollars in buying power, enabling us to be highly competitive. We maximize your savings through:

  • Customized pricing on all your key supplies, typically saving 10%-15%
  • Pricing stability – we only change your price when our price changes
  • Automatically highlighting less expensive comparable items
  • Ordering & budget controls to help manage overall purchases
  • Product standardization to drive users to your best values
  • Product solutions designed to reduce consumption

 

 

Reducing Labor Processing Costs

The biggest opportunity today in reducing overall supplies procurement costs is in reducing the labor costs associated with processing orders. These costs include the time needed to research and order the item, receive it, deliver it to the requestor, process the bill, track any backorder, manage any onsite inventory, process returns, and manage the overall vendor relationship. As most supplies are comparatively inexpensive, the combined labor costs of the many steps to fully process these items are often more costly than the products themselves. AAA excels in providing customized solutions that streamline the labor your organization spends on these processes.