Controlled at the swipe.

"As a construction project manager, I saw firsthand the inefficiencies when our labor crew procured materials and supplies through in-person transactions.

Typically, on larger construction projects, a procurement or purchasing team handles all the purchase orders and invoices for materials bought in bulk. However, there are instances when someone from the crew goes out, whether for an emergency or a one-off need, to a place like Home Depot or a supplier such as Ferguson for materials.

Here is what that in-person purchasing process typically looks like:

First, that crew member needs to generate a Purchase Order (PO) number on a physical form. This typically involves looking up the previous PO number to make sure they are using the next consecutive number for the PO form. Next, they will list the materials they need to procure on this form. At this point, the price of materials is still unknown, so the form is essentially half-completed with the PO number, Job Name and a Material List.

Next, they run the partially completed form by the project manager (which would have been me at the time) for approval to go out and purchase the items.

Once given the green light, the crew member goes to the supplier, purchases the material, and grabs the receipt. Now, you have a partially completed PO form and a receipt.

They then scan that physical PO form and the receipt to either the project manager or directly to the purchasing/procurement team. It is up to that team to 'true up' that PO form and the receipt with the actual cost of purchased materials.

Most importantly, they are responsible for assigning that material cost to a particular cost code and project. This ensures the expense hits the correct budget or general ledger line item, and verifies the cost for that material is applied to the correct project.

The biggest pain point is the time it takes for these costs to be tracked in the budget. The time it takes to get physical forms scanned, cost codes assigned, and finally approved is significant. Imagine when this material is purchased for an emergency, like repairing a burst pipe. Crew members are scrambling and these physical forms can be rushed and consequently inaccurate or misplaced altogether. This slows down the budget reconciliation process.

By the time that expense actually hits your budget, it could be a couple of days. Meaning, the management team is missing out on real-time tracking of project expenses which is critical for making informed project decisions.

In addition to the budget/general ledger reconciliation taking time, the crew member who may have used a personal credit card to make the purchase now needs to wait longer for reimbursement.

The current process for in-person transactions on construction sites, small or large, is still archaic and in need of a streamlined solution."