Materials ordered from site: the cost that never reaches the invoice
Ask a firm where their material margin goes and you will hear about supplier prices. Look at the jobs and it is usually something duller: parts bought for one job and fitted on another, a delivery note that stayed in the van, and a handful of small items nobody could be bothered to write down.
Three ways material disappears
- It reaches the wrong job. Bought on Monday for the Smith job, fitted on Tuesday at the Jones job, costed to Smith forever.
- It never reaches a job at all. Trade counter purchases that sit as a general cost and quietly reduce the whole year.
- It gets absorbed into labour. Especially bad on CIS work, where the deduction then applies to money that should never have been in the labour line.
Record it where it is used
The only reliable moment is the moment of use, by the person using it, against the job they are standing on. Every other arrangement — reconciling delivery notes on a Friday, matching statements at month end — is a reconstruction, and reconstructions lose the small items first. The small items are most of the leak.
Ordering from site is a different problem
An engineer who needs a part today does not want a procurement process. What they want is to record what they are getting against the job in ten seconds, so that the cost lands somewhere rather than nowhere. Whether that becomes an order, a note or a photograph of a receipt matters far less than that it happens at all.
Van stock is a job in itself
Most firms carry a few hundred pounds of stock per van and treat it as invisible. It is not: it is money, it walks, and it is the single most common source of "we definitely fitted that but nobody charged for it". Full stock control is usually overkill at this size. Recording the common consumables against jobs as they are used gets most of the benefit for very little effort.
Then check the prices
Once materials are recorded per job, supplier pricing becomes a question you can actually answer: what you paid against what you quoted, by item, over a quarter. That is a stronger position in a supplier conversation than a feeling that things have gone up — and it also tells you which of your standard prices have fallen behind.
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