As a procurement professional, managing the procurement of a property can be challenging, and if you do not use smart sourcing decisions, it can adversely affect the owner’s profitability. Whether it is paint or appliances, property managers need an efficient procurement system that enables them to buy quality products and services while keeping costs down.
Look for discount on volume purchases
One of the best ways to minimise costs when handling property procurement is to negotiate prices with vendors based on volume. Focus on ordering more items for several properties rather than concentrating on one. It will enable you to get good deals without incurring high costs.
Centralise property procurement
Rather than letting individual property handle procurement, centralise the procurement process. Create standardised product specifications and the scope of services that you can use as a benchmark to get bids from qualified vendors and suppliers. When the procurement process is centralised, you will be responsible for identifying the best products and ensuring that you buy them for a competitive price. On receipt of products, you can ensure that individual property managers get them. It will save time and reduce your burden, as you will not have to worry about getting quotes from vendors who are not qualified.
Have a warranty tracking system
It is essential to have a warranty tracking system to minimise property management costs. It will prevent you from buying new items without checking whether the warranty is still valid. Ensure that the system can be accessed by property managers so that they can determine whether a product is under warranty when it breaks down or gets damaged. If under warranty, you can claim it rather than buying a new item.
When it comes to property management, procurement has a major role to play. Developing an effective and efficient product procurement strategy for properties will enable you to keep costs down, giving a positive effect on the bottom line, and also creating long-term value for tenants and the properties.