Data Collection and Item Master Set-up Best Practices
“We’ve loaded the exact products and vendors we want our centers to buy from, ensuring we get the right products at the best prices. I keep control over spend and can reduce costs.”
Rami Nofal, Touchstone Imaging
Align your purchasing processes to flow through a single system
Bring more of your spend under management
Eliminate duplicative systems and processes, and gain better control
Step 1: Set your goal: one solution for all procure-through-payment processes
🗸 Once you’ve identified the right system to support your materials management processes, you can begin planning and preparation
– A single system with a robust item master containing all vendors, items and purchases, and facilitating a single enterprise-wide process, will eliminate one-offs, off-contract spending and rogue purchasing
Step 2: Pull the data needed to create your purchasing history
🗸 If you’re able to pull purchasing data, the last 18 months of purchases will provide a solid baseline of vendors and regularly ordered items needed to create your new item master
🗸 No PO history? Your primary group purchasing organization (GPO) might be able to help
– Starting with clean, neutralized and complete data is critical. Check if your GPO can provide this data collection service
🗸 If you elect to take this journey yourself, start with your primary vendors, especially the distributor from which you receive the majority of your supplies
🗸 If you don’t have a realistic way to create your PO history, start by printing out all vendors from your accounting system
– Contact the vendors directly to request a 12 month history file and from there, a PO history can be assembled
Step 3: Build toward supply chain control, with control over every transaction
🗸 Create a process where every purchase goes through your materials management system
🗸 Create a purchase order for every purchase; route every purchase for approval
🗸 Redirect buyers away from purchasing through individual vendor websites
🗸 Be on the watch for invoices that get paid without validation of receiving the supplies
