More efficient procurement is helping charities reduce unnecessary costs, operate more efficiently and ensure more resources can go towards what really matters to them

In the charity sector, every penny spent on administrative tasks or back-office functions –required to ensure the organisation works effectively – takes money away from the vital delivery of frontline services.

While running enterprises inevitably incurs expenses, ranging from staff costs to office rents and products essential to the day-to-day operation, charities – and those who donate or award grants – need as much money as possible to go towards changing things on the ground for the better.

Whether that’s helping vulnerable people live in better housing, improving the plight of animals or assisting those caught up in domestic violence or conflict rebuild their lives, it’s the front-end activities that really makes a difference.

All this means that those tasked with purchasing items for charities and non-profit organisations have an additional responsibility to spend money wisely. Often, though, organisations do not have dedicated procurement teams, and the buying of essential items is left to office managers or other staff.

Not only can this mean staff who could be focused more on their day job becoming embroiled in trying to source items, it can also make life difficult for accounts teams who require receipts for auditing purposes. In turn, this can make it hard to demonstrate transparency into just where funds are going.

It also means organisations miss out on understanding just what they are buying, and whether such items could be found elsewhere at a lower price or are even needed. A lack of clear information on what is being bought, by whom and why makes it impossible to find more effective ways of operating.

The cost of such items can add up. Any office or business requires essential equipment such as IT devices, furniture, stationery or washroom products, while charities may also need to purchase basic equipment such as crockery, blankets or toys. Failing to control how this is bought can mean charities paying over the odds, taking money away from the delivery of its primary cause.

Recently, however, Amazon Business has helped charities get on top of their spend. The use of such technology allows charities to empower certain employees to make purchases through a single system, where they can access what they need at competitive prices.

As well as being able to control who can make purchases, procurement or finance teams can also identify trends in what is being spent and by whom, helping them monitor compliance with company policy. There’s also a clear audit trail, allowing accounts teams to access receipts and avoid having to deal with large numbers of expenses claims.

Charities can also mandate the use of certain suppliers, such as those which have achieved certain sustainability certifications, small businesses or those from the local area, and record progress made towards such goals over time.

Already thousands of charities are realising the benefits of buying through one marketplace with which employees are already familiar from their personal lives. One is Rays of Sunshine, which aims to create precious memories and provide positive distraction for seriously ill children aged between three and 11. It works with around 100 hospitals and can support as many as 30,000 children each year.

The charity uses Amazon Business to make its purchasing simpler and ensure timely delivery of gifts to children. “When I first joined, we were sourcing items from multiple suppliers and had lots of different invoices coming in,” recalls Daniel Jagger, head of operations and finance.

“It was quite time-consuming, not only for colleagues looking for products but also for the finance team, which was receiving multiple invoices. The trigger for us to go to Amazon Business was the opportunity to buy everything from one supplier.”

The charity places a strong emphasis on sustainable buying, directing buyers towards products that have Climate Pledge Friendly labels. It also likes to support local businesses and highlights these to buyers using the Guided Buying feature, and bundles deliveries on the days when most people are in the office to reduce road miles.

Last year, the charity teamed up with Amazon Business to enable visitors to the Rays of Sunshine website to purchase gifts from wish lists for its Christmas Toy Appeal. These were then dispatched from Amazon Business and delivered to hospitals free of charge.

“By teaming up with Amazon Business, we’ve been able to simplify the way we find and buy gifts for our wish children,” says Dan Assor, CEO. “Whether it’s sourcing sensory toys to make a hospital stay less scary or finding memorabilia to get a child excited to meet their favourite pop star, Amazon Business helps us add that extra touch of magic.”

To find out more about how Amazon Business could help your charitable or not-for-profit organisation deliver more through smarter procurement, click here

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