Look at a few recurring purchases and work out where the money and time go. Keep prices, freight, billing errors, discarded supplies and staff effort separate. Adding them all into one “savings” figure can hide what you actually found.
Start with one recent month, five recurring items and every site that orders them. Record the account, location, product and pack alongside every price. A quote for one site may have different terms from an invoice for another.
A worksheet you can use
For every line, fill in:
- Period and site: ______
- Item, ordering UOM and pack: ______
- What was needed and who approved it: ______
- Category: price / freight / discrepancy / waste / staff effort
- Source record and amount: ______
- What you’re comparing, including any changed terms: ______
- Evidence status: estimate / verified difference / issued credit / applied adjustment
- Owner and next check: ______
- Possible overlap with another line: ______
Total each category separately. Before counting a credit as recovered money, ask accounting whether it has been applied or refunded.
Five places to examine
Prices. Compare the same approved item, pack and quantity. Note whether the price comes from a contract you’re eligible for, a current quote or an old invoice. For medical devices, a device identifier identifies the labeler and a particular version or model. It helps you check the item. It doesn’t tell you whether another product is clinically interchangeable. FDA UDI basics.
Freight. Record what you paid and when you needed the supplies. Combining orders may reduce freight, but a cheaper shipment that arrives too late doesn’t solve the same problem. The quote comparison checklist combines price and freight into a delivered total.
Billing errors. Check the reason for a mismatch before disputing it. Keep track of whether the supplier has issued a credit and whether accounting has confirmed it was applied or refunded. A dispute alone hasn’t recovered any money. The invoice discrepancy guide follows a credit to accounting.
Waste. Record what was thrown away, what it cost and why. Don’t assume all of it could have been prevented. You’ll need accurate information from site staff about expiry dates, usable stock and what was used.
Staff time. Count the calls, clarification, supervision and rework as well as placing the order. Time saved gives staff room for other work. It only reduces spending if payroll or another expense changes. Include benefits when estimating employer costs. BLS distinguishes wages and benefits. To decide who should carry that effort, compare hiring, software and an outside service.
What the numbers can and can’t tell you
These figures are made up for the example. They aren’t supplier benchmarks or Manoa results.
| Measure | Calculation | Result |
|---|---|---|
| Comparable product difference | 40 cases × ($60 − $58) | $80 |
| Comparable freight difference | Six $15 shipments − four $15 shipments | $30 |
| Applied credit on separate earlier invoices | Accounting confirms the adjustment | $120 |
| Observed discarded goods | Three cases × $60 | $180 |
| Net staff time released | Ten hours − seven hours | Three hours |
| Modeled capacity | Three hours × $36/hour employer cost | $108 |
The first two lines add up to $110 less for the same purchases, delivered. The $120 credit belongs to earlier invoices. We don’t yet know how much of the waste could have been avoided, and the $108 value of staff time isn’t a reduction in payroll.
Where Manoa fits
Manoa checks prices and terms before an order goes out, follows up with suppliers and reconciles invoices. Our purchasing example shows how we work with your team.
