Capital Program Logistics
Companies with large, multi-project programs long ago discovered the benefits of centralized - or “flat” procurement of common equipment or repetitive services. By aggregating purchases, owners receive better pricing a higher level of customer service from suppliers along with more consistent performance. These same benefits can be obtained by removing the hidden aspects of transportation and storage from vendor purchase orders and consolidating all program logistics services under a single agreement with Venn-Corp. This approach provides the owner with a consolidated view of the logistics picture, including all costs and available efficiencies. Specific program benefits include
Coordination of equipment procurement from the issuance of purchase orders, through site delivery and installation, each step of which is integrated with the program and project schedules. This reduces program staffing requirements and allows procurement staff to concentrate on purchasing activities instead of coordinating between vendors, shippers and the field staff.
Centralized management of all program-related transportation, warehousing and site deliveries in the most cost-effective manner available.
Customized reporting tailored to the requirements of the owner’s program.
Coordination of equipment procurement from the issuance of purchase orders, through site delivery and installation, each step of which is integrated with the program and project schedules. This reduces program staffing requirements and allows procurement staff to concentrate on purchasing activities instead of coordinating between vendors, shippers and the field staff.
- Venn-Corp will develop a logistics plan for the program, which is driven by the overall program schedule and each individual project schedule. The results of this plan define the completion and shipment requirements for each vendor’s purchase agreement.
- Venn-Corp will coordinate changes to the construction or production schedules with the program management team and suggest changes to the logistics plan as necessary.
- This process provides early identification of equipment that will not meet the schedule requirements and identifies alternative logistics solutions.
Centralized management of all program-related transportation, warehousing and site deliveries in the most cost-effective manner available.
- A single logistics firm can provide, better purchasing power, cross-vendor and regional consolidations for transportation and warehousing of material and equipment at both the program and project level.
- Venn-Corp’s management of pick-up and deliveries in concert with the program schedules allows consideration of a variety of transportation modes to maximize cost-effectiveness.
- Venn-Corp can utilize its industry-leading pricing with preferred transportation suppliers to obtain costs benefits otherwise not available to the program.
- The reduced logistics costs from multiple efficiencies and just-in-time deliveries not only reduces the overall capital spend, but also improves cash-flow, reduces capital financing costs and allows allocation of logistics costs to FF&E, allowing for shorter depreciable recovery.
Customized reporting tailored to the requirements of the owner’s program.
- Venn-Corp’s systems provide customized budgeting for all logistics spending, with variance reporting, at the project and purchase order level.
- Consolidated reporting provides insight into secondary logistics costs and allows the management group to enact controls to reduce these costs.
- The management team can receive real-time inventory reporting, by project and purchase order, with the status of each, including reporting of items that have shipped behind schedule. This direct reporting results in better control of the project by eliminating multiple layers of filters that often hide the true status of equipment deliveries.