Margins are shrinking on material so any unnecessary time spent in your warehouse or not in possession of the customer is a waste of money. Another growing area of expense is with unnecessary shipping. One contributing factor to this waste is the disconnect between the Project Management Office and Accounting‘s procurement team. This disconnect often leads to material being purchased to early on a project or the wrong material being pre-ordered before engineering work is finalized.
These problems can often be corrected with a reallocation of roles between these departments as well as bridging some of the visibility gaps as people examine the operational and financial aspects of a project.
The right tools can allow you to empower the PMO to set required dates on material and create change orders to facilitate material returns or additions to the job. Purchasing in turn gets a holistic view of all material demand across all projects for whatever period of time is desired. This results in material being ordered just in time to be deployed, quick returns of unused material and bulk orders to preferred vendors across projects, all saving precious cash.
- Instant feedback between the PMO and Purchasing to squeeze timelines on ordering material
- Track and control all changes across departments
- Eliminate manual processes and communications
- Procurement Automation allows you to track minimum, re-order and maximum inventory levels for consumable material to ensure you are never over stocked or run out of critical items needed to maintain your customer’s systems.
- Purchase material just in time.
- Track materials prior to site delivery, onsite and returns to unused material can be redeployed or returned to vendor as soon as possible
- Fully automate the procure to pay process.