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Is Your Property Wasting Money? Learn How Purchase Orders Can Help

July 6, 2021

Is your property wasting Money? Learn how purchase orders can prevent money from going down the drain.

The Benefits  Best of a Purchase Ordering System

By Operations Team. For more information, contact Robert Parmar

One of our existing client’s greatest concerns is money being spent unwisely at the site level and then hearing about it after the fact when nothing can be done about it.

Our Response and Results

In response, we implemented a purchase order system utilizing AvidXchange’s purchase order software platform. Within it, we set up specific roles for each job title authorizing a range of purchasing authority. If something falls outside one’s authorization tier the system automatically sends an approval request via email up to whoever is authorized to make the purchase. The authorized party is then able to log into the platform to review and either approve, disapprove, or guide the requestor to a better alternative. We can create as many restrictions and tiers for approval as clients desire.

We have seen a marked improvement in site-level purchasing decisions since implementing this system. The number of situations where there is a breakdown in communication regarding purchasing decisions or accountability has been greatly reduced.

The effect on the bottom line has been positive and more importantly, our clients are much happier when reviewing their financial reports in arrears; it has given them greater peace of mind that prudent spending decisions are being made.

They have much less concern that their money is being wasted and that Net Operating Income is being unnecessarily diminished.

There are many moving parts and day-to-day operational needs at a sizeable apartment complex leading to a high monthly purchasing transaction volume. It is very difficult, after the fact, to dig into a Trailing 12 P&L to weed out unnecessary purchases whether for a client’s peace of mind, refinancing, or valuation. The best way to avoid these difficulties is to make better decisions upfront. Our system is not perfect by any means, but it is markedly better than before and better than what we see implemented by our competitors. 

 

Robert Parmar

Southeast Region

rparmar@smfield.com

770-920-3055

 

 

 

 

 

 

Trevor Manning

Northwest Region

tmanning@smfield.com

503-867-5214

 

 

 

About Summerfield

Summerfield specializes in the management of apartment properties that are approximately 125 units or larger, and is licensed to manage in Washington, Oregon, Idaho, Florida, Georgia, & South Carolina.

If you would like to discuss additional specifics of our management program, please reach out to our Managing Director, Robert Parmar at rparmar@smfield.com or 770-628-5943


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