With $800 million in assets at 21 branches, Truliant Federal Credit Union's one-person purchasing department couldn't hold out any longer, automating its manual purchasing processes earlier this month.
Processing Content
Truliant's new web-based procurement and asset management application, ProcureIT, integrates front-end purchase order creation with back office systems. In addition, "simple yet extensive reporting capabilities" assist senior management in decision-making, according to Thom Beck, senior vice president of operations for the 170,000-member CU.
Into The 21st Century
The XML technology brings the purchasing department into the "21st century," added Nicole Martin, purchasing officer. "The reduction in redundant hours and paperwork will be tremendous." She expects decreased processing time for approval and purchasing orders, shorter lead times and quicker order fulfillment. ProcureIT is offered by Charlotte, N.C.-based Verian Technologies, Inc., providing spend management solutions.
"ProcureIT also provides the ability to open a real-time connection with suppliers via the Internet," Beck continued. "This is an added bonus, because we can reduce catalog management costs and eliminate middleman and transaction fees."
Previous purchasing processes were laborious, Martin said. "I'd receive purchase requisitions from branches in paper form-email, fax or office mail. As long as they could get it here one way or the other I didn't care. Then, I'd have to reenter the requisition into the old purchasing software, print it and then fax it. When the item came in, the branch would check it and send the packing slip back to me. I'd match the packing slip up with the invoice and send it to accounting to be paid."
Now, procurement at the 500-SEG CU has been streamlined. "With ProcureIT, my branches can type information into the system and a manager will be able to approve it before it automatically goes through to the vendor. Approved items don't stop in the purchasing department anymore. Staff members can track it online. They don't have to pick up the phone and call me every time. Then, I can reconcile the invoice online and accounts payable will pick it up and process it from there."
In addition to the ProcureIT module, Truliant has installed ProcureIT
Vendor Connect, enabling real-time links for procurement from suppliers, such as Staples, Inc. and Dell Computer Corp.
Target: Middle-Market Players
"This is the best software I've seen for the price, in terms of ease of use and functionality," Martin said. "The system is aimed at middle-market players."
Mid- and large-sized CUs can expect to pay from $20,000 to $300,000 plus 18% for annual maintenance for ProcureIT, depending upon the number of users and the kind of applications the CU chooses.
Beck says the system takes purchasing processes beyond mere online ordering.
"ProcureIT is not just about buying things," he told The Credit Union Journal. "We want to integrate buying into our fixed assets system, by moving data from one company to another to pay our bills."
