A request comes in. It’s a supplier with an eCommerce site. To get the item ordered, the lab manager clicks a few times on a supplier site and the order is placed! Done.
Except. It can pay to slow down a little and do a bit of comparison shopping.
For example, this GeneJET kit is available through both Fisher Scientific and Thermofisher Scientific’s websites. Fisher wasn’t having a sale on this item, but Thermofisher was. By changing a website, money was saved!
EMD Millipore and Sigma are another example where this can work. EMD Millipore doesn’t often have promo codes. Sigma often does and EMD Millipore items are often available through sigmaaldrich.com.
Again, ostensibly, these are one company, Millipore-Sigma, but their web portals sometimes don’t behave that way.
These both are special cases of a general rule: if something is offered more than one place, definitely compare pricing, availability, and the lab’s relationship with supplier. Last: ask a preferred supplier to match a competitor’s better price when deciding where to buy an item.
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.
Minimum order information to track:
Item description and item number
Confirmation number/PO number
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
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.
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
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.
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.)
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.
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.
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.
In the end, the misrouted HPLC water did enjoy its tour of wine country and was only a day later than scheduled.
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
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)
We are grateful for our scientists, suppliers, and accountants.
The Virtual Lab Manager team at HappiLabs sends thank you cards to scientists, individuals at suppliers, operations managers, and accountants that genuinely help us in our work to make scientists happy and improve the quality of their research.
We thank scientists for being scientists working to improve our world and our lives.
HappiLabs knows it takes a team and special effort to change the world and we say thank you to those helping us do that.