The $300 Stapler!

The administrative costs associated with purchasing small-ticket items are often the same as the administrative costs of purchasing fixed assets such as furniture, computers, and ATM machines.

 

By People's First Federal Credit Union

 

Jim needed a stapler. Ann approved the requisition. Rusty ordered and received it. Charlie delivered it to Jim who had already bought another stapler. How many times does this happen at your credit union?

If you think this example seems extreme, consider the following: The administrative costs associated with purchasing small-ticket items like office supplies are often the same as the administrative costs of purchasing fixed assets such as furniture, computers, and ATM machines. The average purchase involves five to six employees, several forms, multiple approvals, and consumes up to eight man-hours. Then add in the cost of returning duplicate or incorrect items, ordering out-dated printed materials, warehousing forgotten inventory, and last-minute orders of mission-critical items.

Purchasing and supply management serves a crucial role in controlling operational costs. Proper management of this process will lower the cost of supplies and equipment. Streamlining and automating the process will improve employee efficiency. These savings will benefit both your employees and your members. Unfortunately, purchasing and supply management is an overlooked and under-appreciated function in many credit unions. In addition to ordering and receiving supplies, your Purchasing Manager is also responsible for tracking cost-center and department expenditures, evaluating vendor performance, maintaining inventory levels for mission-critical items, negotiating service contracts, preventing internal and external fraud and abuse, and serving the needs of every employee in the credit union. The Purchasing Manager is a professional, but is often treated like a clerk.

Process improvement studies and self-assessment efforts are often focused on improving the time and expense of delivering products or services to your members. An assessment of your purchasing and supply management will reveal ways to improve the time and expense of delivering products and services to your employees. These improvements will reduce operational expenses and increase the bottom line.

One proven method for improving these processes is to implement an automated purchasing and supply management system. Purchasing at a Glance â, a product of Vision Software Solutions, is a scaleable system designed specifically to meet the needs of financial institutions. The product has a proven track record of over ten years and a nationwide client base of credit unions.

Purchasing at a Glance is a complete purchasing management system including: requisitions, quotes, purchase orders, inventory tracking, automatic re-order, receiving, department billing, general ledger accounting, and detailed reporting. From the part-time Purchasing Manager with a single license to the multi-billion dollar credit union with 3 or 4 full-time users and 40+ remote branch licenses, Purchasing at a Glance will improve your process, reduce your expenses and increase your access to information.

Purchasing at a Glance sales consultants are experienced in purchasing and supply management and understand the needs of credit unions. The company provides a free process review and needs assessment, a cost benefit analysis, and a 30-day evaluation of the product.

To begin the assessment and analysis process or to request the free 30-day product evaluation, call (800) 792-7224 or (800) 792-PAAG.

To learn more about Purchasing at a Glance (PAAG) or to download a product demo, visit our website at www.paag.com. Take a few minutes to visit the Testimonial Page to read what others have to say about the benefits of Purchasing at a Glance.

Vision Software Solutions is a software development and support company specializing in solutions for the financial industry. Our products aid in reducing cost, lowering risk, optimizing business processes, and improving financial analysis – in short, they create better visibility into operations and better clarity for business decisions. By using our premier products, Purchasing at a Glance® and fisCAL®, credit unions benefit from increased efficiency and cost savings.

 

Aug. 8, 2005


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