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Current State

General Project Info

  • Phase 1

    • Install Posts

    • Use 3rd Party Service Crew

    • Send PO to 3rd Party

  • Phase 2

    • Finish Fence

    • Uses a different crew from Phase 1

      • Internal Crew or 3rd Party

Multi-Home & Single Home Project

  • One Project

    • One Parent Sales Order

      • Kits - Includes all the labor, components, etc

      • $0 Parent Sales Invoice

      • WH Shipments

        • Phase 1

        • Phase 2

          • Possible they need to update the quote order at this time.

          • Sometimes they will change the quote

          • Sometimes they won’t

  • One main opportunity

    • Child opportunities for each residence

      • Each Child will have their own

        • Quote

        • Invoice

Payment Terms

  • Payment Terms

  • Prepayment/1st deposit = 50% of the quote.

    • This becomes the first invoice

    • After 50 days it becomes non refundable

  • There are other payment terms

Purchasing

General

  • Evaluate each year what is needed

  • Bulk Purchases at the end of the year

  • Only one Vendor per Item

    • They don’t have multiple vendors they would order the same item from.

  • They receive a big savings for purchasing in bulk

    • 150K - 200K a year

    • But the downside to this is 28-40% of their cash is tied up in inventory

    • They currently carry about 6 months of inventory - they’d like to reduce to 2 months.

  • Only purchase from US and Canada

    • Very rarely overseas

  • 200 SKUs that they don’t keep in stock

    • Purchase as special orders as needed.

Receiving

  • They receive in long pieces of wood that need to be cut down.

  • Right now they do inventory adjustments to manage this.

Warehouses

  • 2 warehouses

  • Overstock goes to one of these WH

3rd Party Labor

General

  • They use 5 different vendors for services

    • Installation of Fences

    • Pre agreed upon labor price

  • When a project is sold they post job openings

    • Purchase Order created for the installation

      • Phase 1 - Posts

      • Phase 2 - The rest

Reports/KPIs

  • Used to calculate the difference between Sub Contractors and Hourly Crew

  • Sub Contractor Cost

    • Project

    • 3rd Party Crew

    • Contractor Rate

    • Commissions for Sales Person

  • Hourly Crew Cost

    • Rate

      • Note: Hourly Crew rate comes from a separate payroll system.

    • Overhead

    • Etc

Future State Recommendations

Projects

An Idea:

image-20240719-194351.png

Reporting Requirements

Purchasing

Blanket Purchase Order

  • Create based on what they think they need for that year.

“Child” Purchase Orders when Items are Shipped from Vendor

  • 2 Month Lead Time

  • Linked to Blanket Purchase Order

  • Need to make a payment before it’s received.

    • 90% of total

  • Process

    • Pre Payment Invoice

    • Item(s) in transit

    • Receive

    • Confirm Receipt

      • Manage Short and Overages

        • Credits or Payments

Warehouses

  • 2 warehouses

  • Overstock goes to one of these WH

  • Would like to manage inventory for each WH

    • One has a yard location

    • Rack Locations at Warehouse 1

      • Bulk Storage

    • Small Bin Locations at Warehouse 2

  • Phase 1 - Do not track individual bins

    • This would be too confusing to current emnployees

Receiving

Work Orders

  • Long pieces of wood cut down into smaller sections

  • Tracked in feet

  • These smaller sections could be byproducts.

Forecasting & Demand Planning

  • 2 Month Lead time from vendors

  • Want to only carry 2 months of inventory

    • Would like to be able to identify categories based on turn around time

  • Would be nice to forecast what work orders are needed for the smaller pieces of wood.

  • Would like to set up safety stock levels

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