One way to apply pressure to keep buying prices low is to link your purchase ordering directly to the chosen suppliers systems so that the orders are transmitted automatically and post into their systems as sales orders from which delivery information will be passed automatically, again, without having to log into a WEB site and look up the delivery information.
A fast moving supplies business needed to rationalise their purchasing to ensure efficient supply of goods that were not generally in the warehouse, the best prices were obtained and availability was known so that customers would not be disappointed.
Solution – VALE built facilities to link directly to the main suppliers’ systems. These systems daily passed back the buying prices and availability of stock in the suppliers’ warehouses. As Sales Orders were taken they were automatically directed to the best supplier as Purchase Orders and processed into the supplier systems. The goods would go directly to the customer marked as if from the sales company, not the supplier of the goods to the sales company, and the supplier systems passed back the delivery details to the sales company systems, thus updating them as goods received.