In the multifamily housing industry, nine times out of ten, you don’t have a dedicated purchasing department like other types of organizations have. Regardless of the departmental makeup of your company, the goods and services STILL have to be purchased. Without team members dedicated to optimizing supply chain and purchasing, you may be missing out on savings and ways to streamline the process.
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Follow along as we outline 5 steps to take to ensure you achieve purchasing optimization.
1. Check Your Data
It all begins with good data. Are you receiving the data necessary internally or from suppliers to make well-informed decisions? Quality and timely data is the foundation for a successful -purchasing optimization strategy.
2. Redefine Your Strategy & Policies
Well-defined and communicated policies must be established to ensure your organization is strategic in its sourcing efforts. How do you communicate and train in the most effective manner? Strategy and policy must be adopted cross-functionally across the entire organization.
3. Evaluate Your Team
Many organizations are understaffed when it comes to established purchasing processes and personnel. What options are available to leverage other resources and to augment your people and results? External specialists can help keep organizations focused on the core business tasks by taking on some of the elements needed for an optimized purchasing process.
4. Take a Look at Your Current Procedures
Look closely at the operational design and organizational structure of the purchasing function. Is your process clearly defined, documented and communicated? All things must be aligned so that people, process and technology are optimized toward efficiency.
5. Analyze the Results of Your Purchasing Process
Companies must identify ways to monitor and measure purchasing in order to determine ROI. Can you benchmark your purchasing results against industry standards or other owner/operators? ROI should be benchmarked against business objectives to drive cost containment, NOI enhancement and performance metrics management.
GPO Strategy for Purchasing Optimization
Group purchasing organizations (GPOs) work to help you optimize your purchasing strategy. Overall, your GPO brings value to your properties in the form of accessibility and expertise, while saving you both time and money. We know you are working with a lean team which is why we have industry experts to assist you when you need advice or assistance. Members of our team have been in your shoes and want to help you fully optimize your purchasing process, contact us today to learn more!