What’s the true cost to your business of placing multiple orders?

Whether you’re buying for yourself or whether it’s on behalf of a business, it’s essential to extract the most from your purchases.  

This is why the topic of ordering is always one for discussion as, depending on how you process it, it can vary in total cost.  

We are frequently asked about what the average cost of an order is, but that’s a little difficult for us to answer.  

The reason why it’s difficult is that there are a few variables to consider, but on average, the cost of processing an order in the UK ranges between £4 and £25.  

That is according to research from the Hackett Group and from Gartner, as per Process Flows, which should give you some idea. However, the general go-to figure for the cost of an order is £50.  

But why is it that much? Why does it vary so much? And how expensive can an invoice be? 

£4 to £25? £50? Why is that average so different and why is the go-to fee much higher?

The short answer is that the cost of actually processing an order varies from business to business, as some will go about it completely differently than others.  

Some may do it manually, which can pose a whole heap of challenges, while others may use automation to process their orders.  

Automation is by no means 100% risk-free, but it certainly cuts down on human error and can save time for others elsewhere.  

Manual ordering can also slow things down, as bits of paper can physically be left somewhere for ages without actually being processed. This also has a cost as it can run the risk of a late payment.  

What is even considered when it comes to working out an order cost?

Things like payment fees, the total cost of the software involved (if there is any), the full cost of the headcount, staff time, whether it’s late or on bad supplier terms, as well as processes.  

All of these things are factored in when getting an average estimate of what processing an order actually costs.  

You also have to factor in things like accommodation, heating and lighting, which all sounds rather odd, but literally every part of the ordering process has to be priced up.   

How to reduce the cost of ordering 

Some of this cost can be offset by planning ahead and placing larger orders, which may be more of an outlay initially, but could save more down the line. 

For instance, one £500 order will be a cheaper order to process than 10 x £50 orders, even though the initial outlay is more.  

You can find out more about the pros and cons of larger orders vs smaller orders here, but as it is just the one order, there is a lot less to factor in to the overall cost.  

What else might help? 

One thing we have at Multifix to help streamline the buying process is our customer portal, which can make an impact thanks to the speed of it. 

All of the important information, such as proof of delivery, invoice etc, can all be found in one place as such. To find out more about the Portal and how it can help you, click here.  

Furthermore, if you would like to speak to a member of our team to discuss invoices or the Portal further, you can get in touch with us by following this link.