10 September 2020 3 min read

How to Manage the Procurement Process in Your Construction Company?

 

Procurement process is extremely important in any construction company. It’s connected to all aspects of complete project delivery and it needs to be thoroughly executed at all times. What tools can we use to manage it better? Take a look at our tips!

The procurement process is one of the most important ones in any construction company, no matter the size. It is how goods are purchased (as well as services), and how contractors are selected for planned, and ongoing construction jobs. The procurement process even sometimes is responsible for selecting subcontractors, manufacturers or independent consultants.

For this process to be efficient and successful it has to be thoroughly managed and the relationships with all partners need to be maintained. Preparing a detailed and well-structured strategy for your procurement process is a vital part of its success. This, however, can prove to be extremely challenging since the procurement process is also closely related to many of the other processes carried out in construction projects.

Ok, so is there one right way of doing it? Probably not. However there are ways to ensure its effectiveness, by following the right tools and methodology. In the modern age of progress and technology there is an abundance of tools for almost anything. The digital transformation constantly develops new solutions for construction project management, and in this day and age it would be unwise not to take full advantage of them. Here are some of the solutions that modern technology can provide to help you manage your procurement process.

Streamline your operations

You need to have a broad perspective combined with the detailed view of things to make legitimate decisions. This is a well-known truth not only in life but in business as well. The best way to boost your company’s growth is to have a clear understanding of what is going on at all times. Whether it’s through managing the incoming orders or tracking the budget spend with financial reports it is paramount to know what is happening on every project and process that goes on in your business. Only with access to all of the information can you make actual informed decisions. But how are you supposed to manage all of that in one place? By using a system tailored to your company’s needs. Moreover, when using a cloud-based solution, you are able to have one single platform with all information at your disposal. Here is how it can benefit your business:

Automate communication
Streamlining the communication with all of your subcontractors, consultants, and suppliers is the first step to success. Having it all in one place, automated, and registered helps you track purchase orders, contracts, and much more. Forget about relying on paper documents or having the information scattered all over different communication channels. Protect and improve your communication by all means, because it surely will increase your company’s efficiency!

Manage your tenders well
Managing the tendering process is yet another procurement challenge. The bigger you get the more crucial it becomes for your company. Focus on a solution that gives you a way of automating this procedure. It’s important to thoroughly analyze and compare submitted tender offers before choosing the winner. Modern ERP systems can offer you tendering solutions that automate the process and make it more efficient. By speeding up and automating the tendering process you will instantly feel the benefits!

Control your budget
It comes without saying, the budget is a cornerstone of the project. Tracking its spend is crucial for a project’s delivery. Oftentimes it can be a very complex and demanding job to do, especially without the proper tools. The budget spend, purchase orders, quote amendments, tenders, valuations, and all other financials rely on each other and are connected. Use modern solutions to control all of them from one place, track changes and dependencies - never losing another piece of information no matter how complicated the project.

When choosing the solution for your company, make sure you also check for their integration capabilities. The ability to easily integrate essential external software is a crucial matter for complete project management. You can take a look at how Archdesk integrates, among others, with (the most common) accounting software Xero here.

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