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OT: Material price comparison across multiple vendors.

Knn

Cast Iron
Joined
Sep 25, 2009
Location
Florida,USA
Hi all, long time no post. After 18 years I'm back in electrical contracting. I'm looking for a way (program) that I can input the materials I need and have the program query my vendor list and return prices from all vendors.
Your input is very much appreciated.

tia, knn
 
Judging from the lack of replies I'm guessing I asked for something that doesn't exist ?
So here's my issue, gathering prices for materials eats up a lot of my time, especially since they are so volatile these days.
Any guidance on how to streamline the process would be greatly appreciated.

Thanks, knn
 
Your vendors need to all be wanting to do this so that the information needed is all in the same format. Do you see them all wanting to make sure only the lowest price vendor gets the sale? Race to the bottom for them.
 
My three commonly used steel suppliers all quote prices differently. Per hundred weight. Per foot. Per inch. And then you ask for 20' sticks and they quote 24' sticks. Almost impossible to accurately compare without a spreadsheet.

As a small business owner, I spend a decent portion of my day purchasing. We are a product design and manufacturing firm with a huge mix. Everything from tiny surface mount electronics components to steel weldments. I don't really trust having an employee do it. Employees have a tendency to take the easy route. They find a vendor they like and aren't really concerned with the cost. Or they go nuts trying to save money on tiny things and waste far more than the savings in time spent. I know my materials and spend the time trying to find the best price on the items the matter. I think it ends up being reasonably well spent when in some cases I am "making" hundreds to thousands of dollars per hour finding a good price versus taking the easy price.
 
I thought this is pretty standard with a correctly setup MRP system, however I think the keyword is "correctly" as the one at my company clearly wasn't setup to do it correctly.

One of my coworkers used to own his own company that was a direct competitor to us and he said their program did this naturally. They would build out their BOM and often many parts would get tagged with multiple vendors when the job went to purchase they'd push a button and it would email out all the RFQ's to multiple vendors with all the parts the given vendor was qualified to supply and they could pick the best prices on everything when the responses came back.

I wish we could get our system to work that well. All too often vendors are chosen based on who the engineer likes the most or just default to McMaster due to convenience.

What do you use for an MRP system or do you not have one? If you don't have a system probably time to get one. If you do you probably need to speak with the company who sells/sets up your software for help.

This really should be a pretty standard need for any company doing machine building or system integration where you need to source hundreds of different parts that all are available from multiple vendors.

A lot of places even carry an internal part number that then goes to the purchasing group who maintains lists of equivalent parts/vendors.

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For smaller companies the purchasing function is a fookin sinkhole. Drags you down and worse, drags your company down if some purchaser spends 2 hours sourcing something and saves you fiddy cents total. The lowest price is most often the part/stock that was easiest to get. An employee thought purchasing was easy. So I gave him a desk and phone and said "buy this job out". FAIL and he did not want to do it again. Call, wait for return call, call back, on and on and on. Purchasing is a huge time sink, keeps you away from making machines scream.
 
My three commonly used steel suppliers all quote prices differently. Per hundred weight. Per foot. Per inch. And then you ask for 20' sticks and they quote 24' sticks. Almost impossible to accurately compare without a spreadsheet.



Thanks for the reply, ditto here. My suppliers also price in different quantities. Wire as an example, some price by the foot, some by hundred foot, some by the thousand and still others quote the total of my order. Though it's not quadratic equations, it still eats time.

thanks again, knn

Scruffy887
Your vendors need to all be wanting to do this so that the information needed is all in the same format. Do you see them all wanting to make sure only the lowest price vendor gets the sale? Race to the bottom for them.

True, while they all realize that they are in competition with each other, they aren't going to make it easy.


adammil1
I thought this is pretty standard with a correctly setup MRP system, however I think the keyword is "correctly" as the one at my company clearly wasn't setup to do it correctly.

My initial thought is that we are nowhere near large enough to warrant such a system. I will however research the matter to determine if I am correct.

Scruffy887
For smaller companies the purchasing function is a fookin sinkhole. Drags you down and worse, drags your company down if some purchaser spends 2 hours sourcing something and saves you fiddy cents total. The lowest price is most often the part/stock that was easiest to get. An employee thought purchasing was easy. So I gave him a desk and phone and said "buy this job out". FAIL and he did not want to do it again. Call, wait for return call, call back, on and on and on. Purchasing is a huge time sink, keeps you away from making machines scream.

Before taking this job I couldn't imagine it even being a necessary position, having done it all myself when I was self employed. It only took two days for me to be buried. Everyday I am forced to drag tasks from yesterday's TDL (to do list) onto today's TDL. Hence my desire to increase efficiency in every area of my responsibilities.
And yeah, from secretaries urrr (Administrative Assistants) who's only concern is to clear the call off their board (to their favorite) "voicemail", which I personally don't think are EVER checked, to sales reps uuuhhhmmm (Customer Experience Advocates) who don't seem to be interested in selling anything, it all culminates in one huge time suck.
So while I research streamlining everything I've decided to use an ad-hoc approach as follows: a) time critical needs = whoever has it closest. b) needed tomorrow = phone call pricing going to lowest price who has it. c) farther out = RFQ via e-mail preceded by a phone call to alert them to the e-mail.

Meanwhile, try to keep it all running smoothly.

Thanks folks, you've given me a direction. knn

 








 
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