Department of the Treasury

Supervisory Tax Law Specialist

At the IRS, each group within the business units purchase and stock their own supplies within their budget. Managers are forced to guess what items the group will need in the future and what quantity and purchase items based on this guess. In many cases, groups have cabinets of unused office supplies. For large government buildings, I suggest using a room in the building to serve as the building’s supply store. All business units in the building could be given a “supply credit card” with a limit based on their individual supply budget. The store can start out its inventory by giving reduced store credit for the current supply of unused office supplies that are scattered throughout the building. For future orders, the store can save money through bulk ordering based on building needs rather than individual group needs. This would result in reduced per item cost as well as delivery savings. Supplies can then be purchased on a need to have basis rather than a guesstimate of future needs. In addition, the individual business units could purchase only the quantity needed instead of the bulk quantity that is often required when purchasing supplies. It would also improve employee morale in that they would be able to get the product when needed.

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Idea No. 18873