Why do field purchases take up lots of construction companies’ time? On to process optimization!

Field purchases: low purchase value, lots of administrative hassle

First, let’s take a closer look at the process. Every now and then, the construction site supervisor discovers that additional materials are needed. In these cases, they have to place an order. One phone call, WhatsApp message, or webshop order later, the project is close to being back on track. The wholesaler processes the order, and the items are delivered shortly afterwards. The supervisor signs the delivery note, stores it, and continues to work on the project.

But the administrative hassle has yet to begin. Once the finance department receives the invoice (which is often a week or two later), you have a ton of time-consuming searching to do.

Usually, supervisors send all delivery notes to the finance department once a day or week. The finance department stores these documents in a digital folder or physical receipt box. When you receive the invoice, you need to locate the right delivery note to verify if the invoice matches the items delivered. Unfortunately, this process doesn’t always go very smoothly. For example, some delivery notes don’t contain a PO reference. And sometimes, the delivery note is still at the construction site. Or, worse, it can’t be found anywhere.

When you’ve finally overcome these obstacles, you need to verify the price. If your organization makes annual agreements with suppliers, you have to look at the price list. The problem is that this is usually a huge document. Often, it’s impossible to plow through it for every item. That means you’re forced to perform a random price verification, after which you post the invoice into the system.

What does the ideal handling process look like?

Currently, field purchases take up lots of time and effort. What are the elements of an efficient handling process? Here’s a list—which outlines the ideal process!

1. Confirm receipt right away
   

   When the items are delivered, the supervisor confirms receipt right away, preferably in a simple way—for example, through an app. This means paper delivery notes are no longer necessary.

2. Automated price verification
   

   A reliable system automatically compares invoice prices with the agreements made. Any deviations are made visible right away, so you maintain an overview and can easily make adjustments if required.

3. Efficient invoice coding
   

   Based on the items ordered, the same system automatically links invoices to the right ledgers and cost centers. It reviews each line item to determine the appropriate codes, so you don’t have to condense line items and can retain all exact data for cost reconciliation.

4. Fast, hassle-free invoice processing
   

   The process is smooth from delivery to invoice processing: you can confirm deliveries right away, the system automatically links delivery notes and invoices, and you can request deviations at any time. So, when you receive the invoice, it’s no longer a surprise—which means you can process it immediately!

5. Real-time insight into compliance with agreements
   

   Important project information is stored at a detailed level, so you can easily run reports. This allows you to check if suppliers comply with agreements in real time.

6. Opportunity to concretize sustainability efforts
   

   Many construction companies want to monitor their impact on people and the climate and take the necessary measures. With better insight into all orders, you have valuable information that can help you manage this impact.

On to a faster and easier handling process! But how to go about it?

Processing field purchases comes with bottlenecks. Do you want to address these effectively? With our Field Purchase Solution, you can put the six above-described elements into practice. The system automates the steps in the process that are currently giving many finance departments headaches.

Curious about the concrete benefits that come with the Field Purchase Solution?

• Time savings: Processing field purchase invoices requires much less manual work.
• Verification: The system automatically verifies prices.
• Efficiency: The system automatically adds codes to all invoice line items.
• Real-time insight: You always have access to your order data, which allows you to check compliance with agreements and make data-driven (management) decisions.
• Convenience: The supervisor can keep placing orders in the usual way and easily confirm receipt.

Would you like to know what the exact process looks like with the Field Purchase Solution? Download our white paper!

Are you curious to learn how your organization can benefit from the Field Purchase Solution, and are you currently using Whitevision’s comprehensive solution? Schedule a demo.

Are you not yet using Whitevision, but do you think you might benefit from the Field Purchase Solution? And are you willing to switch to Whitevision? Feel free to contact us. We are happy to discuss the options with you.