Financial industry strategies help credit unions realize large increases in tangible earnings. Implementation of procurement software leads to a rapid ROI and decreased business costs.
Credit union administrators are often surprised at the actual cost of doing business. Budget and spending analysis reveals vast expenditures for services, goods, inventory, and contracts, to which must be added the large costs for the management of these purchases. These expenses erode the bottom line. Automation of the procurement process, accompanied by ease of reporting and budgeting, quickly pays for itself in the return of operating funds to the organization.
Manufacturing and retail segments enjoy a reduction in overhead through innovative purchasing and inventory management. Internet searches for purchasing software show that credit unions are embracing this concept of strategic cost-containment. How a credit union acquires office supplies, deposit slips, application forms, marketing materials, furniture, and equipment affects its members.
Credit union members expect their funds to be used wisely in the service of the organization. The administrative details (quotations, requisitions, purchase orders, invoices, and receipts) and costs of a purchase are the same whether one purchases a stapler or an ATM. Every dollar saved by automating the process and eliminating needless paperwork goes directly to the bottom line – no member retention, marketing, or customer service is necessary for this sort of earning to take place. Increase the bottom line by implementing a solution that will not only automate the procurement process, but also:
- Develop and track cost center and departmental budgets
- Uncover and reduce duplicate purchases, oversupplies, waste, and maverick spending
- Quickly and easily highlight Key Performance Indicators and cost-tracking metrics
- Produce departmental billing, G/L account, and purchasing reports with a few clicks of the mouse
- Forecast the need for goods and services based on historical usage
- Negotiate contracts for goods and services using past purchase history as leverage
- Enable departments and locations to place and track their own purchases
Several examples highlight a few of the possible cost savings and benefits from the use of a consistent, cost-effective, purchasing system.
Case Study #1
A credit union in Florida automated their purchasing process. Their new purchasing agent, who had used an automated system at his previous job, was able to consolidate all the service and maintenance contracts for all the printers and copiers throughout the institution. This single act yielded savings in excess of $30,000 for the first year.
Cast Study #2
A credit union in Pennsylvania was using a single vendor for all their office supply needs. Utilizing the reporting and tracking options within their purchasing software, they were able to create requests for quotations based on the actual usage over the previous year. Realistic requests and quotations led to savings of up to 50% annually on many items. The purchasing agent responsible for these savings was promoted to facilities manager!
Consider joining the growing number of credit unions who have significantly improved their performances by implementing Purchasing at a Glance (PAAG). A product of Vision Software Solutions, this program encompasses all the features above and is specifically designed to meet the needs of financial institutions. Purchasing at a Glance:
- Is used by Purchasing Agents, Marketing Managers, IT Administrators, Operations Officers, CFOs, Branch Administrators, etc.
- Has a nationwide customer base of credit unions and other financial institutions
- Exhibits a proven 10+ year record of updates and service
- Is used by more credit unions than any other purchasing solution
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. The confidence created by use of our premier products, Purchasing at a Glance and fisCAL, helps credit unions benefit from increased efficiency and cost savings. It’s like planting a money tree in your back office.
To learn more, visit us online at www.PAAG.com. Join us at NAFCU in Las Vegas in July.