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Centralized purchasing: Taking business operations to a new level of efficiency

Making the most of everyone’s time/skills

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Companies can maintain turns on inventory and stock only what is needed. This eliminates tying up thousands of dollars on products that are not used regularly.

With Patio Pools & Spas’ service trucks incorporated into the system, products are automatically deducted from the inventory as it is pulled off the truck. When the service technicians are preparing their trucks in the morning before leaving the shop, the warehouse manager knows exactly what each technician needs on their truck before heading out for the day. It is no longer the responsibility of the truck driver to know what they need to have on their trucks for any given day.

All purchasing, sourcing, and research falls on the purchasing department, not in retail, service, or construction. Previously, for example, service technicians used to spend time researching parts for each specific project. It was common for them to spend one to two hours in the office each day to perform this task. Now, the company’s service technicians are no longer wasting time sourcing the products they need to service, it is all handled by the purchasing department. This has made Patio Pools & Spas’ service crews much more productive and profitable.

By implementing this business management software and centralized purchasing system one might think the company’s purchasing agent would be less useful to the organization when, in fact, it makes them more valuable. This person no longer needs to spend inordinate amounts of time with purchases and instead can now concentrate on making decisions that directly affect the profitability of the company.

From a company stand point, the employees feel less dependent on the purchasing manager, knowing the system is operational 24-7, which means management of the company’s purchasing and inventory is never compromised.

“Our purchasing manager now makes better business decisions and there is a lot less ‘blaming’ or pointing fingers because it is all in the system for everyone to see at all times,” says Ragel. “So, even if the actual purchase is made in a centralized fashion, the system is transparent and accessible by all. Everyone in our company has ‘faith’ in the system.”

While anyone in the company can see where a product is located, there are various access levels that can be set to avoid everyone from seeing actual product costs and mark ups.

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