How to Save Money on Labor Purchases

Last month, we teamed up with our partners at Broadleaf, a total talent solutions company, to attend ProcureCon Indirect East, an interactive, peer-led event for senior procurement practitioners. We attended the event to find out what sort of challenges procurement people are dealing with as they relate to managing their labor force.

We learned that indirect buyers of goods and services are driven by cost savings, so here are two good ways to save money on your labor purchases.

  1. Invest in a payroll program.
    Are you dealing with temporary workers? Interns? Part-time employees? That’s just the tip of the employment iceberg. Your diverse workforce is designed to help you meet fluctuating production demands and remain competitive in your industry, but only if your administration tasks—such as labor tracking and spending—are simple and scalable.With a flexible payroll program through an experienced provider such as Acara Solutions, you don’t have to act s the employer of record, manage employee classifications, or take care of sensitive co-employment issues. At Acara, we take care of all that so you don’t have to.Your opportunity to leverage extra time and resources, paired with Acara’s competitive rates, means making a positive impact your bottom line. Don’t forget to investigate these other important factors to consider when weighing your low-cost payrolling options.
  1. Explore centralized purchasing.
    According to the Purchasing & Procurement Center, there are pros and cons to centralized purchasing, which is when a business creates a single department to handle all of its purchasing activity. Benefits typically include “efficient inventory control, lower staffing costs and a decrease in overheads,” but let’s compare the positives with the negatives.
ProsCons
Eliminate costs from otherwise duplicated tasksLocal discounts are hard to come by for geographically diverse companies
Execute volume deliveries that reduce delivery charges and staffing costsThe department might become too large to manage
Work with purchasing pros who are trained to minimize costsSmall companies are not the best fit for paying costs of centralized purchasing
Improve relationships with buyers to learn about cost-effective products and servicesDelays may occur due to ad hoc purchase requisitions

 

If you’re looking to free yourself from the burden of payrolling and save money on labor costs at the same time, you may want to invest in a payroll program from someone like us.

Or, if you think you can sustain a centralized purchasing program on your own, go for it—just make sure you know the pros and cons.

Want to reduce your labor costs with Acara Solutions? Contact us!

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