San Francisco Housing Authority

Ariett Solutions:: 
ReqNet

San Francicso Housing Authority

San Francisco
500
Since 1939
Not-For-Profit
Challenges: 
  • Manual processes causing delays in requisition approvals and ad hoc purchasing.
  • No visibility or purchasing accountability to manage facilities and properties in timely manner.
  • No ability to define preferred vendors or contract items. Services being ordered without Budget Checking.
  • No accountability across company departments, causing improper tracking and reporting.
Results: 
  • Procurement can respond to residents and product managers requirements quickly.
  • Real-time visibility to Budget, Budget Status and Commitments against budget when requisitioning.
  • Easy to use electronic system providing manager with decentralized visibility to information and easy control.
  • Flexible Workflows that can adjust to different types of purchases and procurement practices.

David Rosario David Rosario, MBA, CISA, ECSA, CHFI, EHC, MCT, ITIL v3
IT Director, SFHA

Can you tell us about your experience using Ariett for Requisitioning, Budget Commitments & PO Management?

"We are a government agency and one of the things that is key to our operations, and a government requirement, is that our property managers manage their own budgets, and in a simple way. The first priority for them is visually being able to see if they have funding or not at any given time to request a purchase. And second is the commitment part - people who are not budgeting savvy can find it quite difficult. With 30 different locations and everyone having their own budgets, Ariett makes it easy for people to be able to manage their budget, see their purchasing commitments and to see if they have money or not available to buy more."

Were your employees able to adapt quickly to Ariett?

"We took users from a process that took up to two weeks to get a requisition approved, to instantaneously being able to check budget at the time of entry and quickly gain approval electronically. Ariett was very quickly adopted by the users because they saw the benefits from the beginning. Before they didn't have visibility to the process, now they have complete visibility to their budget and the status of the approval. Ariett is quite simple to use, the visual part is key, and again being able to get a Purchase Order quickly - going from two weeks to really just a very fast electronic and people driven process, it has helped the agency quite a lot. Adoption was quick - no hesitation on it because the users realized the benefits immediately."

Can you give an example of how Ariett helped you reduce costs?

"Well, we realized immediate cost savings in time and effort. It used to take two different budget people, and even in fact, the finance director to approve a requisition. Cost savings came first with reducing the labor that it took to process a requisition; finance folks had to look at paper requisitions and check another system to see the budget, then pass it to someone else to check another budget as well and then that person would have to pass it to a finance director to sign off. If you could put numbers to it, to see how much time and effort it would take to do one requisition it may have taken many hours to complete. In addition to that, the Ariett solution forces people to actually do requisitions. In the old days we would get invoiced for services without a Purchase Order because it took so long. Now the process is well defined and streamlined and we save money because at the time of entering the requisition you know if you have the funding for the services or not. Before we purchased services whether we had the money for them or not. So I think that putting a value on the cost savings - it may add up to hundreds of thousands of dollars each year because again, we used a lot of time getting approval and trying to check budgets – ending up purchasing services often without having a requisition. This has all improved because Ariett allows us to go in and see what money we have for that line item."

"So I think that putting a value on the cost savings - it may add up to hundreds of thousands of dollars each year..." ~ David Rosario - SFHA

Has using Ariett had an impact on your buying process?

"Yes. What happens now is that the Procurement team, has visibility across the properties to see every purchase. They are able to see those small items that have been purchased for example under $2000 over and over again, so they have visibility to say "OK, this person has been buying items for $2000 from this X vendor several times and that is bypassing procurement policy". Our workflow allows us to track all purchase orders and search and filter for example on orders less than $2000 you don't need to get multiple price quotes, so the procurement person sees in seconds how many requisitions is for the same vendor and the same property under $2000 repeatedly. Now procurement can get involved and require 3 quotes, get a competitive bid, so from that perspective we've gained a lot of visibility to what everyone is doing, and can take actions that result in cost savings by buying and sourcing products better."

"The workflows also helps the process of people not buying the preferred items or from the preferred vendors, without somebody else authorizing the purchase. Ariett’s flexible workflow allows for simple workflows for some departments and more complex workflows for other types of departments – we can adjust to the needs of different types of purchasing."