UK/Europe

As of October 1, 2020, Spend Matters UK/Europe and Spend Matters US merged to become a global entity. This is an archive of all previous UK/Europe content and the home of region-specific content going forward. With all of the globalization and consolidation of brands, and with the majority of our readers moving to virtual work and now working globally, we consider this a huge opportunity for increased digital connectedness.

 

The hidden cost of the pandemic for technology buyers, and 3 tips to avoid paying inflated margins

hidden costs

Spend Matters welcomes this guest post and its insights from Ian Nethercot, MCIPS, Supply Chain Director at Probrand, a tech services provider.

Procurement practitioners are under constant pressure to maximize budgets and do more with less. All the while, every cost has to be accounted for and made transparent. Despite the best intentions, monitoring fair price levels on IT products is no easy feat, with several elements to consider at any one time — including fluctuating exchange rates, overseas delivery charges and new products arriving on the market.

And then there’s the social, economic and political factors — which include the devastating impact of the coronavirus pandemic. The global supply chain all but collapsed in 2020,While it’s true that whenever demand outstrips supply, you’re always going to see prices rise, what suppliers were asking of their customers during lockdown far exceeded the increase seen in the trade prices. It seems likely that there was more than one scenario where suppliers took advantage of the chaos to inflate their margins. 

Read more to find out some tips to protect your budget.