How BuyMetrics Adds Value
Experienced lumber buyers consistently reduce cycle time, saving on-average one-third of their time and/or increasing purchase volume 2-3X. BuyMetrics Enterprise edition incorporates a full range of speed assists, templates, load calculators, up-to-buyer/down-to-vendor alerts and notifications, drill-down detail, PO issuance (no manual re-keying), reducing administrative error, instances of incorrect shipment, incorrect invoice. You now have an auditable data trail from RFQ to product receipt. No duplication of function — Accounts Payable stays a function of your back office system.
Historically, buyers have been price-takers. By leveling the
market-information
advantage long-held by sellers, BuyMetrics shifts control of the BUY to the buyer.
BuyMetrics
patented technologies uniquely provide transaction-level transparency - market data
dynamically
normalized/adapted to context of a specific item, at a specific time, for a specific client
-
bringing market benchmarks to the realm of the individual user, the individual transaction.
Decision-shaping information.
BuyMetrics improves execution and administration of buying
process. Once implemented, purchasing becomes a series of teachable processes.
A core business process, visible, manageable, reconfigurable.
Your corporate experience base is now in a database. Access to your data is via an intuitive, point and
click
interface, empowering you to analyze and measure performance (on-the-fly), quickly respond
to changing opportunities, hone strategy and tactics, systematically improve outcomes.
BuyMetrics increases client's capacity to quickly and efficiently handle peak buying loads while extending market reach. Shopping more vendors improves price discovery especially in volatile, fast-moving markets - exactly when most lumber is purchased. Periodically BuyMetrics conducts yearlong studies of the purchases of major lumber dealers/component manufacturers. Study methodology: for each purchase, calculate the $$$ savings between the awarded PO and the next best offer: "How much more would I have spent if I didn't see the winning offer"? Findings for 2021: (1) the average spread versus the next best offer increased 2x from prior studies; (2) 36% of awarded POs went to secondary suppliers, CoG savings attributable to secondary suppliers increased 5X; (3) shopping via BuyMetrics produced quantifiable CoG savings of at least 390 basis points (adding $390,000 to client's bottom line for every $10 million in lumber purchases). For detail see BuyMetrics CoG Case Study for 2021.
BuyMetrics patented technologies: (1) produce client-customized, context-specific metrics (market measures) for items/offers; and (2) generate a relative value metric for each offer (price divided by metric), the resulting index value enabling competing offers, including inherently unequal offers, to be objectively compared. The complexity comes in contextually ascertaining (learning) the client-specific, transaction-specific, item-specific adjustments required to turn mis-matched market data into useful information (applicable to your inventory, your locations). Beyond the immediate transaction, your most-current shopping data, including normalized-for-you metric data, represents valuable data that can be aggregated, analyzed and re-purposed for use across your business (i.e., to set quote/sell prices, negotiate contracts).
Automated parallel workflow dramatically cuts the data collection cycle while preserving private one-to-one communications with valued suppliers. Founded by an industry veteran and collaboratively honed (over two decades) by experienced lumber buyers, BuyMetrics understands the enduring value of the one-to-one buyer/seller relationship.
BuyMetrics operates via a private channel, BuyMetrics Connections Portal, enabling purchase data to flow seamlessly to/from BuyMetrics and your back-office ERP system(s), vendor portals, logistics providers and other special-use applications, optimally providing near real time visibility across your supply chain. BuyMetrics authenticates all users. The use of e-mail is intentionally limited (mitigating cyber risk). Vendor notifications (if received via e-mail) take vendor to a secure BuyMetrics interface before any data is entered. Each vendor has access to a personal dashboard on the Connections Portal where he/she can manage all of his or her RFQs/Offers/POs in one place.
How BuyMetrics Adds Value