William David Homes’ Post

Did you know by hiring a purchasing specialist you can potentially lower your direct cost. Lower costs This is by far the primary function of the purchasing specialist. A well-skilled purchasing specialist should allow you to achieve immediate savings by choosing a mix of suppliers who can provide the best prices and terms. This process will start building trade relationships for your company. The purchasing specialist can also provide savings by taking advantage of rebates and discounts often forgotten by non-specialists. Purchasing can also help you save by providing better transparency in how your company spends. This will, in turn, allow you to negotiate better contracts and free up your cash flow. Purchasing can also create structure and processes that will build a strong foundation for increased productivity and a higher level of efficiencies, resulting in growth and increased profitability. If you are spending all your time between construction and purchasing, let me help you. By having a purchasing specialist, this will allow you to utilize your time in other areas of construction and allow purchasing to set you up for success! Call me and lets chat about what drives you and where you want to take your company in the future. 📲 225-788-3906

This image appears to be a diagram illustrating different categories of procurement. At the center, it says "Types of Procurement" and is surrounded by four segments, each representing a different procurement category: 1. **Direct Procurement**: This refers to the procurement of goods or services that are directly used in the production of another product or service that a company offers. For example, a car manufacturer purchasing tires for the cars they build. 2. **Services Procurement**: This category involves obtaining services rather than goods. Services might include consulting, maintenance, marketing, legal services, and more. 3. **Goods Procurement**: This is the process of acquiring physical products, such as raw materials, machinery, office supplies, or any tangible items that are needed for business operations but are not directly included in the final product or service offered by the company. 4. **Indirect Procurement**: Indirect procurement involves purchasing goods or services that are not directly incorporated into a product or service offered for sale. These are typically supporting resources needed for day-to-day operations, such as office supplies, furniture, or cleaning services. The diagram presents these four procurement categories in a visually connected way, indicating that they are all important aspects of the overall procurement strategy of a business. Each category must be managed effectively to ensure the efficient and cost-effective acquisition of goods and services necessary for the company's operations.

Are you tired of the chaos surrounding inventory management at your construction sites? Contractors.es has the perfect solution to streamline your processes and eliminate the headaches associated with on-site stock control. 🚚 Direct Deliveries from Building Supply Warehouses  Say goodbye to the hassle of receiving multiple deliveries directly from building supply warehouses. With Contractors.es, you can effortlessly manage and track all incoming materials at the construction site. 📋 Effortless Delivery Confirmation  Our innovative solution allows your on-site staff to digitally confirm deliveries by scanning delivery notes. No more manual paperwork – just a quick and efficient process that ensures accurate records for each shipment. 📊 Real-time Inventory Tracking  Stay in control of your inventory with Contractors.es. Our platform enables you to track the quantity of materials on-site in real time, giving you a clear overview of what's available and preventing potential losses. 📑 Transparent Documentation  Bid farewell to misunderstandings between the field and office staff. Contractors.es provides a centralized platform where everyone can access detailed information about the ordered materials, ensuring clear communication and minimizing confusion. 🚫 Prevent Losses and Theft  Tired of materials mysteriously disappearing from your construction site? Contractors.es helps you keep a vigilant eye on your inventory, reducing the likelihood of theft or wastage by enabling efficient tracking and accountability. Ready to revolutionize the way you manage your construction projects? Choose Contractors.es and experience a seamless, transparent, and efficient solution for your on-site inventory challenges. Say goodbye to inventory woes – embrace the future of construction management! 🏗️✨ Visit Contractors.es now to learn more! 📢

In procurement, we always face the question of when to use RFQ (Request for Quotation) or Tender. While it might seem easier to use one method for all purchases, just like what I do 😎, the choice really depends on the specific needs and complexity of each purchase. let's break both down to define when to use each. RFQ: Purpose: RFQ is a purchasing process that is used to purchase specific products or services and is looking for competitive pricing. When to Use: 1. Simple Procurements: Purchases based on well-defined specifications and requirements. 2. Price Comparison: To compare prices and terms from multiple suppliers. 3. Shortlisted Suppliers: Typically used to a list of pre-qualified suppliers to be approached for pricing. 4. Frequent Small Purchases: For routine and low-value purchases. Process: Buyers prepare detailed specifications and requirements, then submit RFQs to selected suppliers. Quotes are provided by suppliers, and buyers assess and select the most favorable offer. Tender: Purpose: Tendering is a formal procurement process used for more complex, high-value project and Long-Term Contracts. Through it, suppliers provide detailed proposals, including technical solutions and pricing, for a specific project or contract. When to Use: Complex Projects: Tenders are suitable for large, complex projects with a large scope of work and budget. Provide Solutions: Suppliers are more knowledgeable about the market variables, so they can suggest customized solutions. Public Procurement: Often required for public sector projects to ensure fairness and transparency. Process: The buyer creates a comprehensive document, including technical specifications and terms and conditions then advertise it publicly. Suppliers will prepare and submit comprehensive proposals. The buyer evaluates proposals, negotiates, and awards the contract. Key Differences: Scope: RFQ is typically for smaller, well-defined purchases, while Tender is for larger, complex projects or contracts. Documentation: RFQ requires less extensive documentation compared to the detailed documentation used in Tenders. Supplier Involvement: RFQs focus mainly on pricing, while Tenders often involve a more in-depth engagement with suppliers. Complexity: RFQs are less formal and are quicker to execute, while Tenders are formal and may involve a longer procurement cycle. Selection of the best method depends on the value and nature of the purchase, as well as the extent to which the supplier is involved. Your approach should be RFQ if the purchases are simple and frequent. Tenders, however, are best used for complex projects requiring detailed evaluations and proposals for solutions.

When I first joined the City of Allentown’s Purchasing Department almost two years ago, I thought I had a pretty good idea what I was getting into. I spent the first seven and a half years of my career in the City’s Public Works Department but enjoyed the aspects of my job that involved Purchasing. It wasn’t until I was working in the Purchasing Department that I understood and appreciated everything they did for me while I was in Public Works. Procurement is viewed as a roadblock, simply put. People think we want to slow down the process of buying things, but that couldn’t be further from the truth. Something I didn’t realize while I was in Public Works was all the rules and regulations that MUST be followed to ensure best pricing and legal procurement. I did not understand all the research and time that went into issuing one Purchase Order. With that, today is Procurement Professionals Day, and I thought I would use my first post on here to highlight some of our Procurement Team's accomplishments from 2023. We processed 1,328 Purchase Orders, an increase of over 160 Purchase Orders that we did in 2022. We approved 9,130 invoices in addition to 7,733 P-Card transactions, which is about 62% more P-Card transactions than we saw in 2022. We worked hard on 22 bids and 23 RFP’s, which included jumpstarting major projects such as the feasibility studies for the Police and Fire Departments and getting our newly inhouse Garage up and running with vendors. We issued 19 quotes, which was up about 46% from 2022. We also processed 258 contracts, an increase from the 242 contracts in 2022. These numbers not only signify how much work our small department of five has accomplished, but they also show just how much our beautiful City is growing. I’m so excited to see what we accomplish this year, not only as a small but mighty team, but also as a City. If you see a Procurement Professional today, don’t forget to thank them for all the work they are doing behind the scenes to help keep your departments running. Happy Procurement Professionals Day! 

tosapwise Material Management is to manage the purchase objects with certain classification to obtain better scale advantages and bargaining power. For example, coordinate the purchasing strategies of each division, select the best suppliers and alternative suppliers at the company level, and negotiate and cooperate with suppliers based on the volume of the entire company. The benefits of Material management are self-evident, but we must be aware of its cross-departmental, cross-product line and cross-business characteristics. With complex organizations and products, the Material strategies formulated by purchasing department are always useless and impractical For example, the purchasing manager selects large companies as preferred suppliers for mass production capacity considerations. The design department prefers to find small companies ,owing the time limit for new product development is too tight, small companies are “small and easy to turn around”, with flexible delivery and fast speed. Of course, purchasing can transfer the business to prestigious suppliers during massive production, but this will fall into a vicious circle of eliminating suppliers (purchasing-led) and looking for new suppliers (design-led) again and again. Not to mention the high cost, some products have to continue to use the suppliers selected by the design due to restrictions such as process flow, so the number of suppliers begins to expand, and the management cost and complexity of the purchasing department increase Therefore, the design department is a key department in the product strategy. So are production, R&D, and marketing. Product strategy must take into account their actual needs and gain their unanimous approval. In North America, many companies that do a good job in procurement use a multifunctional group approach to manage products. For example, a procurement manager, a design engineer, and a production manager form a team responsible for formulating and implementing the product strategy for motors. This group is the Material team (some companies call it the “Supplier Action Team ( SAT ). Such a team is often led by procurement, but it does not necessarily have to be led by procurement. As long as the responsibilities and roles are clearly defined, people from any department can lead.

Efficient Supply Chain Management for Builders How Builders Can Help Ease the Price of New Homes in 2024-2025: Part 2 Efficient supply chain management is crucial for controlling costs and ensuring timely project completion. Here are key strategies to consider: 1. Bulk Purchasing Negotiate bulk purchase agreements with suppliers to reduce costs and ensure a steady supply, minimizing delays. 2. Local Sourcing Identify local suppliers to minimize transportation costs and support local economies. This approach reduces logistics expenses and contributes to community growth. 3. Advanced Inventory Management Systems Implement technology-driven solutions for inventory management to streamline operations, prevent delays, and reduce storage costs. Actionable Tips: Bulk Purchasing: Negotiate with suppliers to lower costs. Local Sourcing: Choose local suppliers for key materials. Inventory Management: Use software to track materials and avoid delays. In the next post, we’ll explore energy-efficient designs for long-term savings. Are you getting the best conversion rates from your emil opt-in methods? Consider an Educational Email Course. It's free to your potential clients and enjoys conversion rates from 10-50%. Here's a sample. https://lnkd.in/eMExm9YQ

Simplify Your Procurement Process with Buy4You Are you a buyer struggling to get timely and competitive prices for your quote requests? Buy4You is here to revolutionize the way your company handles building material requests, making it easier for site managers and others to streamline procurement. How It Works: 1. Site Manager’s Role: • Logs into Buy4You using a unique project ID. • Completes a simple form with details of required materials, delivery date, and any additional information. • Submits the form, triggering automatic quote requests to relevant suppliers. 2. Supplier’s Role: • Receives an email notification about the quote request. • Submits their quote directly on the Buy4You platform. 3. Buyer’s Role: • Logs into the admin page to view and compare quotes. • Analyzes the quotes based on cost and lead time. • Selects the best quote with a single click, converting it into an order. With Buy4You, you can relax and wait for the best prices to come in, making your procurement process more efficient and less time-consuming. Embrace the future of procurement with Buy4You and ensure you always get the best value for your company.

Hey Quantity Surveyors, Inventory Management v/s QS ???? Inventory management plays a crucial role in the field of Quantity Surveying (QS), which involves the estimation and management of costs related to construction and building projects. Efficient inventory management within the context of QS is essential for several reasons: Cost Estimation: Quantity surveyors are responsible for estimating the quantities of materials required for a construction project. Budget Control: Managing inventory effectively allows QS professionals to control costs throughout a project's lifecycle. By keeping track of material quantities and costs, they can monitor expenses and make necessary adjustments to stay within budget. Procurement Planning: Quantity surveyors need to plan and manage the procurement of materials and supplies. Efficient inventory management ensures that the right materials are available at the right time, reducing delays and potential project disruptions. Risk Mitigation: Poor inventory management can lead to overstocking or understocking of materials. Overstocking ties up capital and may result in storage costs, while understocking can lead to project delays and additional expenses. Cash Flow Management: Quantity surveyors must optimize cash flow to ensure that there is enough money available to meet project expenses. Resource Allocation: Inventory management also extends to managing labor and equipment resources. QS professionals need to ensure that the right number of workers and equipment are available when needed, which is closely tied to the availability of materials. Quality Control: Inventory management can play a role in quality control by ensuring that the right materials of the desired quality are used in the construction process. Waste Reduction: Efficient inventory management can help minimize waste by reducing over-ordering of materials. This aligns with sustainability goals and can lead to cost savings. Documentation: Maintaining accurate records of inventory levels, procurement activities, and material usage is crucial in QS. This documentation helps in audits, dispute resolution, and providing a transparent record of project expenses. Quantity surveyors often make decisions related to material substitutions, supplier selection, and cost optimization. Effective inventory management provides the data needed to make informed decisions that benefit the project financially. In summary, inventory management is an integral part of Quantity Surveying, as it directly impacts cost estimation, budget control, procurement planning, risk mitigation, and overall project success. Efficient inventory management ensures that construction projects are completed on time, within budget, and to the required quality standards. Useful?? Like ,share and comment your thoughts.

Innovation in procurement When l was in the public sector, one of the procurement method l had implemented was DARA - Demand Aggregation and Reverse Auction. Demand aggregation involves combining multiple projects' needs into a single, larger demand to gain better pricing or terms. Reverse auction is a procurement method where sellers compete to win business by offering increasingly lower prices. Both strategies aim to optimize costs and enhance procurement efficiency. To avoid possible pitfall of getting lower quality products due to lower pricing, a 2-stage process can be implemented. Suppliers submit their products’ brand and model and their unit rates based on the aggregated quantity during the 1st stage. Only suppliers whose product meets the specifications will be invited into the 2nd stage to participate in the reverse auction. Successful suppliers will become nominated suppliers in construction projects. They will supply material to bidders based on fixed rates committed to the client. Bidders will include their profit markup and installation labour in their tenders. This method of procurement was used for price discovery of common products used by most projects such as electricity, switchgears, cables, piping, security fencing, etc. The price reduction achieveable through DARA can be more than 50% largely due to the economy of scale and price discovery through reverse auction. DARA is widely used in various industries. These strategies continue to be valuable for organizations seeking cost savings, improved negotiation power, and efficiency in procurement processes. Many businesses leverage these methods to enhance competitiveness and achieve better deals with suppliers.