Bulletin
Loose Purse Strings
FROM:
MAY-JUN 2003 ISSUE
Canadian companies are spending too much money. That is the key finding of a survey done by
American Express last fall. The survey of
229 Canadian finance and purchasing executives found that most organizations have basic cost containment strategies in place, but there is room for improvement in overall purchasing practices.
Three-quarters(74 per cent) of the companies have a purchasing department, and
87 per cent have purchasing policies in place. However,
43 per cent do not enforce their policies, and
69 per cent don't formally communicate the policy's guidelines to employees. In addition,
86 per cent said their employees spend outside the set policy on a regular basis.
This inconsistent approach to spending on everyday items like office supplies and equipment, couriers, maintenance and repair supplies, computer hardware and software, and temporary help has cost corporate
Canada $15 billion in savings,
American Express says. The research for
The American Express Survey of Canadian Expense Management was conducted by
Léger Marketing and is considered accurate within
6.5 percentage points,
19 times out
of 20.