Procurement Practices

5 bottlenecks to turn into breakthroughs in material purchasing

Eric Helitzer
,
May 10, 2024
‍A major challenge in any construction project is maintaining seamless communication between the field teams, office staff and suppliers who typically communicate across many different channels (phone, email, text, pen/paper). SubBase tackles this issue head-on by providing a unified platform where all stakeholders can interact seamlessly, without changing the workflow.

Bottleneck 1: Disparate workflows

Boosting field-to-office collaboration and communications

The Challenge

A major challenge in any construction project is maintaining seamless communication between the field teams, office staff and suppliers who typically communicate across many different channels (phone, email, text, pen/paper).

SubBase tackles this issue head-on by providing a unified platform where all stakeholders can interact seamlessly, without changing the workflow.

The Solution

Centralized communication: With SubBase’s construction material management tool, field staff can communicate directly with the office through a single interface, minimizing the steps involved in getting your message across. This eliminates the need for multiple channels of communication such as emails, phone calls, or text messages, which often lead to information silos and misunderstandings. SubBase ensures that all messages and updates are streamlined through one system, making the process more efficient and less prone to errors.

Real-time updates and feedback: SubBase’s centralized means allow for real-time updates from the field to the office and vice versa, keeping logs up to date without the manual hassles. This immediacy in sharing information means that any issue can be addressed promptly, field teams can see where materials are in real-time and decisions can be made quickly, keeping projects on schedule, within budget and ultimately teams happy.

Bottleneck 2: Tracking cost codes

Solving the challenge of complicated cost codes

Keeping track of actual spend within a budget involves a maze of cost codes that can easily become a bottleneck, slowing down progress and creating frustration when orders are moving fast. SubBase, with its user-friendly interface, offers a much-needed solution with controlled automation to this extremely overlooked problem.

The Challenge

Every dollar spent on the job, specifically materials, will be coded into a budget. Sometimes a single purchase order can have many different line items with unique cost codes, making it a challenge to keep everything organized upfront. Manual tracking is often impossible and can lead to errors and inefficiencies, creating a bottleneck in the purchasing process. Teams often waste time deciphering these codes to understand what's happening with their orders. Most of the time, cost codes make it toward the end of the process when invoices are ready to be paid, leaving it very difficult to properly forecast spend on projects.

The Solution

SubBase’s procurement tracking tool addresses this challenge head-on with its cost coding feature at every step of the process. These built-in tools help organize and track costs in real-time, giving you a clear picture of your budget at all times. The cost coding feature integrates with the rest of the purchasing process—from the moment an order is placed to when the invoice is paid, costs are automatically tracked and coded, eventually making it way back into your accounting system.

By automating the cost coding process, SubBase simplifies material purchasing, making it easier for you to manage your budget and forecast future costs.

By making codes easier to comprehend, teams can pay more attention to their real work instead of getting bogged down by paperwork and handwritten notes on a delivery ticket or invoice to confirm the right cost codes. SubBase’s approach to complex cost codes makes managing projects easier, more effective, and less stressful for everyone. Not to mention, real-time visibility into spend at the field level that most office teams do not have today.

Bottleneck 3: Establishing pricing upfront with vendors

Streamlining pricing with vendors for more efficient purchasing

The Challenge

Agreeing on prices with vendors upfront can often be a slow and complicated process. Layer on the fact that most suppliers post-COVID are not willing to lock in pricing for too long given market fluctuations.

SubBase’s procurement tracking tool provides a solution that helps make this process quicker and more transparent for both sides of the market to make a deal. It also ensures projects can start faster without compromising on the accuracy of pricing, leading to many “blind” POs going out.

The Solution

Instant access to upfront pricing: SubBase's user friendly platform allows for upfront pricing from vendors before projects start. Simple RFQ access and built-in messaging provides you with immediate communication with vendors, speeding up the negotiation process. And with all vendor information centralized, it’s easier and faster to get pricing confirmations.

Strengthening vendor relationships: Strong relationships with vendors are crucial for smooth project operations. SubBase builds on existing relationships by maintaining a consistent line of communication and providing vendors with information organized at their fingertips. Buyers can reach out to their trusted vendors in a structured manner, ensuring that prices are agreed upon before orders are sent out. This efficiency improves trust and reliability, making future negotiations smoother.

Leveraging historical data: One of the standout features of SubBase is its ability to make use of historical data. The platform can analyze past transactions to provide a clear view of typical costs and pricing trends. This data is crucial not only for validating current prices to ensure they are fair but also for forecasting future pricing scenarios. This means teams can anticipate and budget more accurately, avoiding surprises later in the project.

Bottleneck 4: Invoice reconciliation

Simplifying invoice reconciliation: streamlining for efficiency

The Challenge

Invoice reconciliation is a necessary evil, yet often problematic, final part of the purchasing process. Traditionally, it is time-consuming and involves many manual steps and stakeholders with different levels of authority. SubBase offers a smart solution to this common bottleneck.

The Solution

Automating invoice processing: SubBase’s automatic material invoice reconciliation transforms invoice reconciliation by automating every stage of the process. This includes:

Automatic matching: With SubBase, invoice reconciliation becomes a breeze. Rather than juggling several tasks manually, SubBase automates the whole process from the inception of the supplier invoice to data entry into your accounting system. It eliminates the need to match every email, purchase order, and delivery ticket manually. Instead, it automatically reconciles invoices against corresponding orders, and flips to a custom approval workflow, reducing the time and effort required.

Quick approvals: SubBase enables rapid invoice approval by routing them directly to the right team members. With fewer delays in approvals, payments are processed much quicker, budgets are updated in real-time which keeps vendors happy and provides cash flow visibility to all stakeholders.

Integrating workflow management: SubBase’s construction inventory management software doesn't just automate processes; it integrates workflows too. It brings all the purchasing data together in a centralized workflow. This means all your information is in one place, making it easier to manage and keep track of. Plus, it integrates with your accounting system, enabling you to move data seamlessly and in real-time.

SubBase addresses the traditionally painful task of invoice reconciliation by automating and integrating essential processes. This approach not only saves time and reduces errors but also enhances the overall flow of construction projects, leading to smoother operations and successful outcomes.

Bottleneck 5: Material requests coming from the field

Streamlining field material requests

The Challenge

Material requests from the field can often cause delays in construction projects. Traditional methods can mean a lot of back-and-forth communication and waiting periods, causing stress for field workers who worry about long waits for what they need. SubBase offers a smart solution to this common bottleneck.

The Solution

Efficient material request handling: SubBase’s construction purchase order software has a streamlined system that makes it easier and quicker to manage material requests from the field. It eliminates the need for lengthy manual processes and reduces communication gaps.

Centralized requests: With SubBase, field workers can send their requests directly through the system. These requests are instantly visible to the office staff. This means no request gets lost in the shuffle, and processing can begin immediately. Minimal typing and on-the-go drop-downs to make sure the right information is sent to the right person.

Real-time tracking: With SubBase, field workers can track the status of their material requests in real time. This reduces anxiety about when materials will arrive and eliminates all the phone calls.

Automating approvals and purchases: One of SubBase’s standout features is its ability to automate the approval and purchasing process. This includes:

Automated approvals: Instead of waiting for manual approvals, which can significantly delay the process, SubBase automates this step based on predefined rules. This means materials get approved for ordering much faster.

Streamlined purchasing: Once approvals are granted, SubBase can automatically generate purchase orders and send them to vendors. Field workers no longer have to worry that it will take too long to fulfill their requests, reducing stress and increasing productivity on the job site.

SubBase significantly improves the process of handling material requests in construction projects. By automating approvals and integrating existing purchasing workflows, SubBase ensures materials are delivered promptly, keeping projects on track and freeing up time for those swamped with the manual tasks. For field workers, this means less stress and more focus on their critical on-site tasks, leading to smoother project execution and better overall outcomes.

To learn more about how SubBase turns your bottlenecks into breakthroughs, book a demo here.

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