How to Use Purchase Orders to Stay Profitable
Construction contractors can’t simply count on a steady supply and consistent prices of materials, even in the best of times. It’s a different world today. It’s more important than ever to have accurate estimates and up-to-date pricing information—so you can take advantage of purchase orders to lock in profit and control costs.
To tie it all together (and keep it tied), contractors need a way to connect accounting and PM workflows with up-to-date prices. Purchase orders can do that, but only with good data. Construction technology has come a long way since the days of spreadsheets and notes, and successful companies must adapt to the pace of change.
Today’s connected, cloud-based construction management suites leverage real-time data and workflows to tie together all phases of construction, so that project and financial planners have the accurate, timely information they need at their fingertips, as well as a deeper understanding of their true project costs and resource allocation.
ProjectSight, for example, is part of the Trimble Construction One connected platform, gives contractors the ability to create a PO from the information entered in an estimate, with connected workflows between field purchase orders and PO receiving. Trimble Construction One also includes Supplier Xchange, a real-time pricing and inventory market.
Purchase orders are a vital part of the process, but in 2022, they can be an opportunity instead of a headache—if you’re using a modern process with solid, connected data!