Purchasing Online helps V.A.W Centralize MRO Buy Inventory by Susan Avery Purchasing Software News August 17, 1995 About two years ago, the purchasing operation at V.A.W of America came to a crossroad: Business was expanding, increasing buyers' workload. Solutions at the time were either to add staff or find a way to mechanize and eventually centralize the function. Taking a first step towards centralization, buying chief Len Stefaniak decided to computerize his operation including receiving and inventory activities. His big concern: "In order for us to operate at maximum efficiency, we must be able to retain, retrieve, and compare information between all of our locations." V.A.W a subsidiary of VIAG of Germany, has three factories in the U.S. (N.Y., Ariz., Fla.) that extrude aluminum. Stefaniak and John Mulz, data processing manager, reviewed 15 software suppliers who provide packages ranging from PC through minicomputer-based systems. "We judged the various packages on capability to interface with manufacturing and accounts payable," says Stefaniak. "We also looked at capability to grow with our operation, and to compare and exchange information with multiple plants." Purchasing at V.A.W. required more than an off-the-shelf package. Stefaniak and Mulz were looking for one that not only closely conformed to the purchasing operation, they also wanted to be able to tinker with it so that it could handle online generation of requisitions, approvals, purchasing reviews, purchase orders and receiving documents. Stefaniak selected MFG/EDP's Purchasing On-Line system which was delivered and installed with unique V.A.W requirements in early 1994 at the Ellenville, N.Y., plant. By September of that year, all three plants were on line. MFG/EDP developed its standard Purchasing On-Line package specifically to provide time and information necessary to negotiate prices, reduce inventory, and improve quality. By allowing users to enter requisitions directly from any terminal, system eliminates redundant data entry and internal expediting. Users may retrieve data automatically from previous reqs or purchase history. Reqs are automatically queued for approval. System provides three levels of authorization with re-directing capability. Approved reqs automatically move to buyer's queue. Users may view reqs and attach either a line item or an entire req to a PO. System updates requirements throughout the process while the user may view his reqs and corresponding POs online. The system also includes a suggested commodity coding scheme that may be used to develop part number for non-stock items. Non-stock purchase analysis reports suggest items to be considered for stock or blanket POs. Supplier analysis tracks on-time performance and non-compliance as well as dollar volume. System supports multiple locations and features an enhanced security system. "In addition to our basic needs, the MFG/EDP system provides for guarded access to information and an audit and document trail of purchase order usage," says Stefaniak. Benefits of the system include lower inventory levels, on-time deliveries, price reductions, and improved quality. MFG/EDP, Key West, Fla., offers several program products that complement and interface to Purchasing On-Line including EDI, fax, inventory, accounts payable, and preventive maintenance.