Sales of consumables to clients can be a source of valuable margin enhancement, but the benefit can easily be lost through a mixture of not recharging correctly and failing to pass on supplier increases.
TemplaCMS Stores Control, in conjunction with TemplaCMS Workflow and TemplaCMS Budgets, ensures that only agreed products are ordered. This reduces admin time by allowing field managers to order against pre-agreed product budgets and authorised product lists.
The recent introduction of e-trading, or EDI (Electronic Data Interface) via janitorial supplier software has dramatically reduced the need for manual intervention in the key stages of order raising, order capture, contractor invoicing and client recharging.
Full visibility of spend versus budget is provided in real-time within order entry or by the TemplaCMS Analytics reporting functionality. You assume full control of your ordering, invoicing and supplier management.
Typical challenges faced by contractors
- Maintaining manual file records as to whether consumables are rechargeable, or included in the contract, relies on your staff checking each time a delivery is made. With hundreds of orders being processed, you may not always pick up the information correctly and fail to recharge where you should.
- Consumables are managed with multiple spreadsheets. For each client there can be a combination of suppliers, products, prices, mark-ups and quantities ordered. Creating invoices from this disparate range of data sources is time-consuming and prone to data error or omission. Furthermore, your existing accounts software may be incapable of holding materials or inclusive consumables budgets by site, making analysis of spend versus budget a lengthy manual task.
- You order cleaning products from supplier websites, which means you rely on them to provide information on what’s been ordered. Supplier invoices arrive in consolidated form covering several sites. You must then pick out what’s been sent where in order to raise client invoices. Your administration staff sometimes order from a supplier without raising a client invoice to cover it.
how your business benefits
- Materials or consumables orders can be generated by field managers against an allowable product template. TemplaCMS Workflow then sends them for approval, prior to goods being ordered. This reduces the admin burden without the risk of budgets being exceeded or incorrect products being ordered. If a client’s materials or consumables come from more than one supplier, a single stores order can automatically raise multiple purchase orders for each of the suppliers. This saves you time in manually raising multiple orders.
- Supplier price lists are loaded to TemplaCMS contract cleaning software along with client-specific mark-ups. When prices increase, individual or bulk updates can be quickly applied, which flow through immediately to client recharge prices where cost-plus pricing is being used. This reduces the risk of incorrectly transcribing price updates to multiple individual records on a spreadsheet.
- All rechargeable consumables are automatically retrieved to the billing run, once delivery is confirmed which eradicates the need for lengthy supplier invoice reconciliation or paper records.
- TemplaCMS Analytics provides a stores reporting facility, so full budget analysis and recharged consumable profitability can be monitored across the company and for any period range.
HARNESSING THE POWER OF JANITORIAL ERP SOFTWARE
A growing number of contractors who already using TemplaCMS to manage their own businesses are now interfacing with their janitorial supplier’s own ERP system to streamline the relationship – see diagram below.
Put simply, there are six software-driven activities at work which take the pain out of the whole procedure.
- Budgets by site are all pre-loaded to the contractor’s own ERP system.
- Agreed prices for each supplier’s products are also pre-loaded, meaning there is no need to cross reference any internal documents when ordering.
- The ordering of products themselves thus becomes a simple process of entering the required quantities, with anything over budget sent automatically for authorisation by the software’s inbuilt workflow.
- A system generated purchase order is then auto-transferred to the supplier via EDI, where it automatically creates a sales order and allocates stock in the supplier’s own ERP system. From there, a pick list is generated and a delivery scheduled and sent to the driver’s PDA.
- Delivery confirmation triggers the creation of a supplier invoice, which auto-transfers to the contractor’s purchase invoice system for automatic matching with the purchase order.
- The final step is the automatic creation of a client invoice for any items recorded on the delivered order as rechargeable.