What Does a Manual Purchase Order Cost? The Calculation

Camilla Lundblad at Mesta knew procurement cost money. But when she did the maths, she was surprised. With around 500 employees with purchasing authority and billions in annual procurement, they were leaking millions – every single month.

Here's the calculation most people don't dare to make.

The cost per order (be honest now)

Costed at an hourly rate, a manual purchase order runs to NOK 500–1,500 in administrative time. The figure is our own, derived from the activity below. Here's what actually happens:

Let's calculate for your business

But wait – there's more

Administrative cost is just the tip of the iceberg. Here's what else you're losing:

• 7% in discounts you're not getting: Mesta identified this as their potential – because employees bought outside agreements.
• Duplicate purchases: Without oversight, the same things get bought multiple times across different projects.
• Delays: Approvals that take days instead of minutes delay entire projects.

"We have a complex procurement picture with many employees ordering from many suppliers. With Vieri, we got oversight and control."

– Camilla Lundblad, Head of Procurement, Mesta