Cost / Benefit Analysis   


COST / BENEFIT ANALYSIS WORKSHEET

INSTRUCTIONS: To obtain a expense analysis of your current purchasing procedures, answer the following questions by selecting the most appropriate response and click on 'Submit'. If there are questions that you cannot answer, skip to the next question and continue. If you need assistance, call 1.800.305.2024.
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    SECTION I - PURCHASE ORDER CYCLE
    1. Is there an internal procedure or system used to issue Purchase Orders?
    2. If the answer is yes, does the system issue Purchase Orders on an automatic basis every time a purchase is made?
    3. Are requests to buy items listed on a printed form and sent by inter-office mail to a purchasing department for approval and processing?
    4. Are requests to buy items listed on a spreadsheet and sent by e-mail to a purchasing department for approval and processing?
    5. Are requests to buy items selected from products listed on a vendor’s ‘shopping cart’ program and marked as orders to buy items?
    6. If product ‘requests’ are listed as orders on a vendor’s 'shopping cart' program, is the product selection limited to specific items?
    7. After products are delivered, are the items checked off on a Packing Slip as being delivered correctly, marked on back order, or marked to be returned for credit?
    8. How is the ‘Packing Slip’ information transmitted to a Purchasing Department?
      a. - Hand delivered;
b. - Interoffice mail;
c. - Email;
d. - Phone;
e. - Web Based Management System.
    9. After a vendor’s invoice is received and checked against the vendor's Packing Slip, what steps are taken to identify the accuracy of each item's price / discount?
      a. - Each item’s price is manually verified for accuracy;
b. - Each item’s price is automatically verified for accuracy;
c. - Each item’s price is subject to a random check for accuracy.
    10. How long does the price verification process take for all the items listed on a normal size Purchase Order?
      a. - Up to 7 business days;
b. - Between 8 business days and 2 weeks;
c. - Between 2 weeks and a month;
d. - More than a month.
    11. After a Purchase Order's cycle is complete, how is each cost center’s budget expense allocated?
      a. - Manual process / allocation;
b. - Automatic process / allocation.
    12. Approximately how many vendors (all vendors) do you purchase products from during from the course of one year?
      a. - 1 to 20;
b. - 21 to 30;
c. - 31 to 40;
d. - 41 to 50;
e. - More than 51.
    13. Approximately how many Purchase Orders (all vendors) are processed during the course of one year?
      a. - 500 to 1,000;
b. - 1,000 to 2,000;
c. - 2,000 to 3,000;
d. - 3,000 to 4,000;
e. - 4,000 to 5,000;
f. - Greater than 5,000.
    14. Are Federal / State compliance statements (equal opportunity employer, etc.,) inserted on each Purchase Order and sent to vendors?
       
    SECTION II - RECORDS RETENTION
    1. Are the records displayed in the following list archived and saved for 3 years or more?
      a. - Product Requisitions
      b. - Purchase Orders
      c. - Proof of delivery
      d. - Paid Invoices
      e. - Stockroom Requests
      f. - Inventory status reports
      g. - Inventory scrap / salvage reports
      h. - Accounts Payable supporting data
    2. If the above records are saved and archived, are they stored as hard copy, or in spreadsheet format?
      a. - Hard Copy;
b. - Spreadsheet Format.
    3. How long would it take to assemble a complete expense report for any given time period covering individual, or all vendor activity, and then broken down by cost center and G/L account?
      a. - 24 hours;
b. - 48 Hours;
c. - 72 Hours;
d. - 5 business days;
e. - Unknown.
       
    SECTION III - INVENTORY MANAGEMENT
    1. Are items (forms, supplies, etc.) stored at vendor / printer's warehouse?
    2. How are the items that are held offsite processed and withdrawn from stock?
      a. - By using a requisition form that is first sent to a purchasing department for approval;
b. - By using a requisition form that is sent directly to a vendor.
    3. How are items that are held offsite tracked and valued?
      a. - By relying on the vendor to supply a physical inventory /valuation;
b. - By using an automated inventory control management program.
    4. Are items (forms, supplies, etc.) stored onsite in a company storeroom?
    5. How are the items that are held in the company storeroom requested?
      a. - By using a requisition form that is sent to a purchasing department for approval;
b. - By using a requisition form that is sent directly to the storeroom for processing.
    6. Is the requisition process manual (paper based), or electronic (e-mail, spreadsheet, etc.)?
      a. - Paper based;
b. - Electronic.
    7. How are the items that are held in a company storeroom accounted for and valued?
      a. - By preforming a physical inventory and applying purchase costs;
b. - By using an automated inventory control management program.
       
    SECTION IV - MAVERICK (uncontrolled) SPENDING
    1. Is there a method to control product ordering for contract and non-contract purchasing?
    2. If the answer is yes, is the process:
      a. - Paper based; (interoffice mail - ordering form);
b. - Electronic (e-mail, spreadsheet, etc.);
c. - Available on a vendor’s website shopping cart program;
d. - Under your direct and immediate (real time) posting control;
    3. Is product / budget expense monitored on a cost center basis?
    4. If the answer is yes, how is this information recorded and allocated?
      a. - Manual posting to an accounting program;
b. - Electronic posting to an accounting program.
    5. Is budget data available to a cost center manager in a ‘real time’ format?
    6. Is there an enterprise wide procurement system that can be viewed by management, that provides overall budget compliance and cost center expense control?
       
    SECTION V - COMPETITIVE PRICING STRATEGY
    1. How is pricing obtained for consumables such as Office Products, Toner, and Janitorial Supplies?
      a. - By sending a usage list to vendors for bidding;
b. - By periodically checking market prices on individual items;
c. - By asking vendors for ‘their’ best prices on an item by item basis.
    2. If competitive ‘bid’ pricing is solicited, what are the time periods between bids / price quotes:
      a. - Every 3 months;
b. - Every 6 months;
c. - Every 12 months;
d. - Every 24 months;
e. - Every 36 months.
    3. Bid lists consist of:
      a. - High usage items by quantity;
b. - High usage items by expense;
c. - Hybrid list of high usage and high expense;
d. - Contract items only;
e. - All items.
    4. Approximate total annual spend:
      a. - Office Products
      b. - Toner
      c. - Janitorial Products
      d. - Printing
      e. - Promotional Products
    5. Are you interested in submitting usage data to obtain a detailed cost analysis for Office Products and Toner?
NOTE: If the answer is yes, we will send you an Excel worksheet requesting the following information:
      • Usage Report date range;
• Manufacturers item number (SKU);
• Vendor’s item number (if different than SKU);
• Item Description;
• Unit of Measure;
• Quantity purchased;
• Purchase price.
       
    SECTION VI - COMPANY STACTISTICS
    1. Approximate number of cost centers (departments / branch offices):
      a. - 10 to 100;
b. - 101 to 200;
c. - 201 to 300;
d. - 301 to 400;
e. - Greater than 401.
    2. Approximate number of company employees:
      a. - 100 to 250;
b. - 251 to 500;
c. - 501 to 750;
d. - 751 to 1,000;
e. - Greater than 1,000.
    3. Approximate number of employees involved in processing a Purchase Order, from the item's requisition to the payment of a vendor's invoice:
      a. - 1;
b. - 2;
c. - 3;
d. - 4;
e. - 5;
f. - More than 5.
    4. Approximate number of staff employed in the purchasing / facilities department:
      a. - 1;
b. - 2;
c. - 3;
d. - 4;
e. - 5;
f. - More than 5.
       
    SECTION VII - FUTURE PLANS
    Describe any plans that your company has to increase procurement management efficiency in the future.