How Four-O-One Electric Streamlined Price Management
Four-O-One Electric, out of Brockville Ontario, has been providing electrical services for over 50 years. During this period, they have experienced many changes and transformations within the electrical profession; from the redesign of the lightbulb to virtual reality simulations of drawings, Four-O-One Electric has learned to embrace change and technology in today’s competitive environment.
Like many companies, Four-O-One Electric discovered the hard way that they were using outdated technologies. The lack of visibility and endless paper trail impacted their back-office team’s ability to execute billing and payments in a timely manner. Ultimately this hurt their ability to grow and increase profits.
To overcome these challenges, Four-O-One Electric searched for an ERP that would ease their problems. They settled on one that was able to meet most of their needs, but their research uncovered that there is not one ERP out there that can do it all. Most ERPs require many hours setup, users need to manual enter all their data, and very few are configurable to allow a comparison of different sets of data. As a result they turned to ICS and ePRO360 to fill in the gaps and eliminate manual work.
One of Four-O-One Electric’s success factors include negotiating and fixing product prices. Even in the service industry it is important to know your true costs when pricing a service call and billing your customers. However, handling price changes and updating their ERP was not as simple. They began to use ePRO360 which provided a simple method to upload their product prices each month. When you upload new prices, ePRO360 produces a spreadsheet report in excel highlighting which products have changed in price and the percentage of change for each one. This report can then be downloaded and easily imported into their ERP.
A second element to obtaining fixed product pricing for Four-O-One Electric was to review invoices to ensure the pricing is correct. This job was being done manually with the purchasing team looking at each invoice and comparing it to a spreadsheet. With a combination of daily services calls and commercial projects, there was a lot of material being handled and purchased daily. This means that Four-O-One Electric could receive up to 50 invoices daily from suppliers adding up to almost 1000 invoices a month. This job was taking up to 36 hours per month to complete and costing Four-O-One Electric over $38K each year.
To improve this process and save time and money, Four-O-One Electric used the ePRO360 Price Verification module. The Price Verification Module takes every invoice line item and compares it to the quoted price and reports back all the pricing issues. This report can be downloaded or directly emailed to your supplier for a credit request.
ePRO360 Price Verification module not only gave the team 36 more free hours per month to focus on other areas of need in the business but saved them money, and pricing issues were resolved faster by the suppliers.
This video demonstrates how simple it is to use ePRO360's Price Verification tool to accelerate and simplify material price checking of supplier invoices.