Getting The Most Value With Supplier Management
How to get the most value from your suppliers in multifamily property management
4 MIN. READ
The right suppliers can make or break the NOI of your entire portfolio. Multifamily property management is already filled with navigating agreements and tallying costs — the more suppliers you have, the more complicated this gets. Here are some strategies you can use to make sure your suppliers always deliver at the highest possible level.
Strategies for Managing Suppliers in Multifamily Properties
Supplier management can be challenging. But it does not have to be. Suppliers play vital roles in mu
ltifamily property management and it is imperative to partner with companies that are aligned with you on all levels.
Understand your spending habits. Property managers need to have a complete understanding of all funds flowing in and out of their portfolios. Knowing what supplies you need, how frequently you need to order and how much to budget will help you partner with the right suppliers. Use software to analyze data so you can see where your money is going. This will make it easier to negotiate and select supplier partners.
Centralize supplier information. Having several suppliers means having lots of documents and specific information. Onboarding suppliers can be a tedious process and you must stay organized. Using a centralized data platform will make these tasks easier. Saving and storing all documents via software like Raiven takes the headache out of this process.
Measure supplier performance. Monitoring, measuring and analyzing supplier performance is important to drive results. Having the data to show and prove how suppliers are performing is critical. It enables you to get suppliers back on track if they are slacking or to reward them if they are proven performers.
Ensuring supplier compliance. Keeping your suppliers in compliance reduces risk to your company. Tracking all licensing, insurance documents, W9s, etc. helps keep your suppliers in check. If suppliers fall out of compliance, Raiven’s system will alert you and allow you to correct course with them.
Managing suppliers does not have to be cumbersome, especially when you have advanced yet simple software that makes the process straightforward and smooth. It allows you to bring more value to your multifamily property management company.
Opportunities to Get More Value from Your Suppliers and Cut Costs
Negotiating the best terms for your multifamily property management company will save you money in the long run. The power of bulk acquisition allows you to cut costs and leverage economies of scale. Here are more ways to get value from your suppliers.
- Negotiate everything. Negotiate lower pricing for all supplies. This encourages flexibility in your purchasing strategy. In today’s competitive climate, it pays to ask for lower pricing and terms.
- Avoid minimum buying commitments. Do not get tied to minimum purchasing requirements. This helps free up cash flow and allows you to monitor your inventory more closely. Streamlining your supply ordering keeps your portfolio running lean — no need to have overstocked shelves.
- Conduct inventory audits to reduce waste. Carefully auditing your inventory will keep you intimate with your supply status. The good thing is after a few months it becomes easier, and soon it will be near automatic.
- Foster supplier relationships. Establishing solid relationships matters. Maintaining positive relations with your suppliers can create advantages and savings for your team. Leverage your supplier relationships and look for win-win scenarios.
Value is a two-way street. You and your suppliers have a symbiotic partnership and each should benefit from the relationship. Look at all ways to improve the service you receive and implement automation for better results.
Software, Automation and Digital Technologies to Simplify Managing Suppliers
Automation with software will improve your ability to manage suppliers. For example, keep all the relevant information in one location and control everything from one dashboard using an eProcurement system.
Technology also brings transparency to the entire supply chain. It enables your multifamily property management team to gain visibility into supplier activities and purchasing habits and to spit out reports to improve benchmarks and tracking. Analytics and insights keep your company competitive.
Supplier management, purchasing and compliance are key factors to keep your company on the cutting edge, and you save when using software like Raiven, which hosts a complete platform of supplier management, eProcurement and an online marketplace. Raiven offers the lowest pricing from the top suppliers in the industry and helps your company save money. Reach out today for more information.