By Operations Team
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 in day-to-day operations at a sizeable apartment complex leading to a high monthly 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.
Are you dissatisfied with how your purchasing is being handled?
Is so we would love the opportunity to discuss and introduce ourselves.
