Resolve to Organize Orders and Invoices

Keeping orders and invoices organized is as important as keeping a good lab notebook.

Keeping track of orders

Lab Manager Claudel Faugio placed an order – hooray! It arrives, the box is opened, and turns out half a sleeve cell culture dishes has been crushed into pieces. Assuming Claudel didn’t stomp on the box before receiving it, that means he needs to contact the supplier to ask for a replacement. The supplier is going to ask for a few pieces of information, including order or PO number, which the lab should easily have handy if it’s organized. 

An image of a Macbook air on a wood table with a phone and notebook in parallel and a coffee cup to one side.
Photo by Alejandro Escamilla on Unsplash

Minimum order information to track:

  • Order date
  • Item description and item number
  • Confirmation number/PO number
  • Order subtotal
  • Tracking information
  • Whether items have been received (& some idea of where they are kept in the lab)

Having this information readily available will be helpful for inventory and should any issues arise with an order. 
There are several ways to keep track of this information from least to most complicated:

  • File any emailed order confirmations in an eponymous folder in the inbox
  • Set up a spreadsheet with the order information as columns
  • Procurement softwares
  • Keep a physical binder of confirmations and packing slips (this method is not as easy to search through). 

Keeping track of invoices & receipts

Now Claudel is rushing to place an urgent order through NEB needed for an experiment tomorrow. NEB is awesome and they get the order in. BUT! The order doesn’t get shipped because there is a hold on your account. The lab hasn’t been paying their invoices on time and now his labmate Chlobe’s experiments are going to be delayed. 

A jar of coins spilled on a floor. More coins are on the floor than still in the jar.
Photo by Josh Appel on Unsplash


Keeping track of invoices and receipts doesn’t seem necessary when doing important science, but situations like this happen often if no one’s minding the books. If Net 30 invoices don’t get paid, a supplier can place a hold on your account until at least some of the outstanding invoices are paid. It is also necessary to have invoices and spending/financial information for taxes and if the lab goes through an audit. 

A basic first step is to get all invoices emailed to an inbox and filed in an invoices folder in the inbox. After that, some methods to keep track and organize invoices and receipts include:

  • A spreadsheet (e.g. add an invoice number column to the orders spreadsheet above)
  • A folder in your Google drive
  • Accounting software such as QuickBooks or bill.com
  • Procurement softwares
  • Accounting services like InDinero or Scrubbed
  • Hiring an in house accountant/bookkeeper to handle invoices/payments to suppliers.
  • Keeping a hard copy binder of receipts and invoices.

Resolve to organize lab orders and invoices

Whether a lab of five or 50 people in a lab, organization of orders and invoices will keep the science going and scientists happy.

A chaotic world of scientists, suppliers, and lab supplies funnels through HappiLabs resulting in a much more organized picture where scientists are happy.
Hiring HappiLabs is also a way to organize your orders, invoices, and lab.

Glossary

Order – A request for goods/services from a supplier. 

Confirmation number – Unique coding of a specific order created by a supplier when an order is placed

Purchase Order (PO) number – Unique coding for an order created by the lab generating the PO

Subtotal – Cost of goods/services not including taxes and shipping. 

Tracking – A unique number to designate a shipment with a delivery company (UPS, FedEx, USPS, etc.)

Received – Confirming delivery of an item and coding it as received in the lab’s inventory system

Invoice – Request for payment from a supplier

Net 30  –  An agreement to make a payment in 30 days as opposed to upfront by credit card or check

Receipt – Proof of payment for credit card purchases. Proof you have paid. 

Accountant – Person at a company (or outsourced) that handles the financial aspect of the business. 

Spreadsheet – A matrix to track data, both quantitative and qualitative.

Procurement/Bookkeeping Software – Third party software designed to keep track or orders and expenses (e.g. Quickbooks, Coupa, Bill.com, etc.)

When the HPLC Water takes a Tour of Wine Country (Parcel Misrouting)

The item is in stock in the local warehouse, the order confirmation comes in, the item ships as predicted, and then it all goes sideways. The package has gone to the wrong place and the item you thought was a sure delivery is now not going to deliver as predicted.

A map of the San Francisco Bay area with a pin in Suisun City, California, near Fairfield north of Oakland and the bay.
UPS misrouted a package from Tracy, CA. Instead, it made it to Suisun City, CA. In this case, they caught their mistake and corrected it.

Managing Delayed and Misrouted Items

UPS and FedEx make mistakes. Busy times for them exacerbate these (e.g. holidays). 
The best defense against delayed shipping is planning ahead and not being in urgent need of any item/reagent.
However, once it’s shipped and misrouted/delayed, here are some actions to be taken.

  • Don’t panic
  • Check tracking page and see if it updates within a day: UPS and FedEx do catch misrouting and correct it.
    • This works if it’s a non-temperature sensitive item that can be delayed a bit
  • If other delays crop up, contact the supplier and have them contact UPS/FedEx (they have direct contacts with shipping scientists don’t):
    • Customs delays – ask what FedEx/UPS need (usually a form)
    • UPS/FedEx claim an incomplete address – ask supplier to inform of full address
    • Weather delays/system issues – contact the supplier for a replacement if item is temperature sensitive

If a scientist does need to contact FedEx/UPS, call and say “agent” over and over again to get a human. Sometimes you can get a human by interacting with their online chat and say “no” when their automated system asks if they answered a scientists’ query (the systems then ask for a phone number and will call you quickly).


Misrouting and delays is one strong reason to pay attention to tracking numbers.

A UPS tracking page indicating a delay in delivery. It also indicated the last scanned location as Suisun City, CA.
An example of a UPS tracking page with a misrouted parcel that UPS caught and was working to re-route.

In the end, the misrouted HPLC water did enjoy its tour of wine country and was only a day later than scheduled.

Glossary

Local Warehouse/Delivery terminal – a distributors closest warehouse/hub to a delivery location
Tracking number – an alphanumeric code that allows tracking of shipments with a delivery company (UPS, FedEx, USPS, etc) 
PRO number – an alphanumeric code that allows tracking of a shipment with a freight company (YRC, R&L, UPS freight, FedEx freight, etc)
Tracking page – web page to check status of a shipment and any potential delivery issues/delays
Temperature Sensitive – an item that is perishable/has to be kept cold for it to remain viable as a reagent

The Fastest way to set up an Account With Suppliers

Have a generic credit application on hand. We even made a sample one you can use as a reference below. This is a document to provide basic info to a supplier about your lab that includes

  • Lab shipping and billing addresses, 
  • bank info and contact
  • FEIN and D&B number 
  • date founded and where it was incorporated
  • Contact email addresses for purchasing and invoicing

Credit applications generally also include trade/credit references. These are suppliers who can say your lab reliably pays its bills on time. 

This document can also allow you to get credit terms with a supplier. Rather than pre-paying for everything with a credit card, the supplier will invoice the lab and they will have 30 days to pay that invoice by bank transfer or other means. 

Suppliers Vary in Account Setup

Suppliers vary widely in their requirements to set up an account and extend Net 30 credit terms. The simplest is registering online and ordering (Amazon). Some suppliers require more work to set up account, but extend terms immediately (Thermofisher). Some are draconian, requiring the most stringent requirements like multiple bank accounts to check as well as full financials of the lab (BD Biosciences). 

Some account set up requirements are negotiable, some aren’t. No matter what though, a generic credit app will save your lab time in getting set up to order with suppliers.

Glossary of useful terms

FEIN – Federal employer identification number (like social security number for a business)

D&B number (DUNS number) – The D-U-N-S Number is a unique nine-digit identifier for businesses. It is used to establish a business credit file.

Credit application – vendor application to get Net30 terms extended

Credit terms – the company has extended a line of credit to you for making Net 30 purchases. There is a spending limit.

Example Generic Credit Application

A generic Credit application with key info to set up an account on Net 30 terms or when filling in a web form to set up a new account with a supplier.

Intelligent Negotiating

The purpose of this blog is to help you understand the techniques for negotiate pricing with scientific suppliers. As you look to buy supplies or equipment for the lab, there are plenty of opportunities to overspend. Be careful! So how do you make the most of your money?
There are three concepts/processes you should understand to help you along the way:
  1. How suppliers and sales reps operate
  2. How and when to ask for a discount
  3. Industry pricing and the term “List Price”

List Price

Don't Pay This Price
In simple terms, List Price is the price of an item listed publicly on a supplier’s website. It is helpful to know if the List Price is a “fair” price, and if you have room to negotiate. We performed a case study, go to here, where you can see data showing how much wiggle room there is to negotiate pricing from the big suppliers. Generally, for the suppliers who sell anything and everything (Fisher, VWR, MilliporeSigma, etc.), you should try to NEVER pay list price.
Please take note that the price you should pay can be up to 80% off List Price. Shopping at scientific suppliers is nothing like Amazon where a market dictates pricing based on quality, reviews, and lots of competition between sellers. You have to be much more diligent with scientific shopping.
For companies that sell a specific line of products (Abcam, NEB, Teknova, etc.), paying List Price is acceptable most of the time.

How suppliers and sales reps operate

There are three branches of a supplier that you’ll interact with: Customer service, technical support, and sales reps. Suppliers hire sales reps to visit labs, call scientists, and email you to buy their supplies. A few points you should know:
  • It is their job to get you to buy from them.
  • Their income is based on two things, 1) how much you buy from them and 2) how close to List Price you pay…the closer to List Price, the more money they make.
  • Some have a science background, many don’t.
Most sales rep are in the “field” visiting scientists. Therefore they can be very unresponsive. Set your expectations accordingly when asking them for help. You can call customer service, but rarely can customer service help you with pricing. You should only call customer service when you need an order update or there’s a problem with the order, but not for pricing info or discount quotes.
The process for getting a quote is usually not fast. Your request first goes to the sales rep, who is possibly out in the field. Then, the sales rep might not have the authority to grant a particular discount, so they have to go to their manager for approval. This takes time, so if you need the items ASAP you might not be able to wait for a quote.

How and when to ask for a discount

The best times to request a quote are:
  1. when buying new and used equipment
  2. bulk quantities (five +)
  3. with a set shipping schedule (aka “standing order”)
  4. when your current price is List Price
Some tactics that help:
  • Use data. “We’ve spent $10,050 with your company this year, at what point do we qualify for the next tier of discounts?”
  • Use the competition. “SupplierX has quoted us this price, but we’d much prefer to buy from you. Can you beat or match their price?”
  • Sample request. “We’re interested in trying a new item in the lab – is it possible to get a discount or free sample?”
  • Be nice. Sales reps are people too. Kindness can get you lower pricing.
  • Don’t take no for an answer. If they provide a quote with a small discount and you think you can do better, don’t be afraid to ask for a larger discount – the worst they can say is no.
No matter the price, never ignore these three factors which can significantly increase the backend cost of the item:
  1. Shipping cost
  2. Timeline to deliver (delays mean your lab is paying your salary to wait)
  3. Product quality. Keep in mind…you get what you pay for. Low cost products are probably low quality. If you’re experiment fails because of low quality supplies, what is the cost of that lost experiment? Was it worth saving $50?
Happy spending!

Glossary of useful terms

  • List price – the public price of an item on a supplier website before applying lab discounts or promo codes
  • P.O. – Purchase Order. A document stating what you intend to buy.
  • Quote – a documented price that is not List Price
  • Sales Representative (sales rep) – contact person at a vendor/manufacturer. They responsible for managing your labs account and pricing, and can help out with order issues. They are assigned to regions of the country, state, or city.
  • Standing PO/order – An order for a fixed quantity of items with a recurring shipping schedule.
  • Supplier– a company that sells goods and services to your lab. They may or may not be a Manufacturer.

HIRING — Support Virtual Lab Manager

Support Virtual Lab Manager at a growing life science company

If you have experience with lab management, purchasing, basic accounting, or customer service, apply!

ABOUT HAPPILABS

HappiLabs is a small business with a startup mentality in Chicago that provides a service to scientists called the Virtual Lab Manager. We support scientists in various ways, virtually, which includes acting as an outsourced purchasing department (some might say a Personal Shopper) for biotech companies and scientific research labs.

We have a mission: to improve the happiness of scientists and the quality of their research.

By helping scientists do their job, we are helping all the people on the planet who benefit from inventions, creations, and knowledge that scientists create.

Purchasing and Customer Service ScientistYou will work out of our Chicago office where you’ll support our Virtual Lab Managers (who are PhDs or long-time lab managers) as they manage labs across the country. You will be interacting with suppliers, freight companies, accountants and scientists.

You will be trained to be one of the best lab managers in the world.

EXPERIENCE

A strong candidate will have one of these backgrounds:

  • Lab manager or tech experience in a lab
  • Logistics or customer service experience (does not need to be in the sciences)
  • Purchaser or bookkeeper
  • Minimum Bachelor’s degree

RESPONSIBILITIES

  • Utilize various apps and software for managing labs
  • Communicate with suppliers (sales reps, technical help & customer service) to obtain pricing and technical info, place orders, retrieve order updates, and solve logistics and supply chain problems
  • Keep detailed accounting records
  • Report progress and solve problems at team meetings

TIMEFRAME

Looking to start now, preferably in Chicago.

COMPENSATION

  • Full-time, salary
  • $35-55k, depending on experience
  • Medical and Dental health benefits
  • Company swag, coffee and snacks at the office, and weekly lunch

SKILLS AND TRAITS YOU SHOULD HAVE

We want a long-term commitment, someone who will help a small company grow into a large one.

  • Tech savvy (very good with a computer, its keyboard and multiple monitors)
  • Proactive mentality – help without being asked to help, and an ability to predict problems
  • Knowledge of hardware or mechanical engineering, and/or chemistry, and/or molecular biology
  • A passion for science and desire to make a difference in the world.
  • Confident presence on the phone. We frequently call suppliers

===== APPLY NOW! ======

CLICK this link –> HAPPILABS JOB APPLICATION (VIA A GOOGLE FORM)

It will not hurt to connect with Tom on LinkedIn.