Purchase Order Software
All businesses have used traditional purchase orders at one time or another. After all, they do serve a valuable purpose: they help companies track purchases and prevent unapproved purchases. However, completing and managing hundreds of purchase orders can become difficult even for the most organized business department. For that reason, many companies are turning to purchase order software for assistance.
Digitizing a Manual Process
Purchase order software, like most types of business software, is meant to help streamline and digitize the manual process of filling out and keeping track of purchase orders. While this once involved creating the order, waiting for it to be reviewed and approved, sending it by mail to the supplier, then checking the received order against the original purchase order, the process using this software is much faster for several reasons.
Faster Purchase Order Process Steps
For one, the purchase order is easier to create. Instead of having to manually enter the vendor and item information, most of these details can be saved within the software and can be added to the order with a few moves of the mouse or clicks of a button. Also, once a purchase order has been created, it can be reused each time the exact same order is needed from that supplier.
Review and Approval
Review and approval time is also quicker using the software. Because the purchase order is in an electronic format, it can be sent to managers via e-mail or instant messenger. Also, the managers can access existing orders created by the software and can use it to approve, void, alter, or reject purchase orders without ever having to leave their desk or have a conversation with the person who created the original order.
Submission to Suppliers
Once the purchase order is approved, it can also be submitted to suppliers faster. While manually created orders were normally mailed and could take 3-4 days to reach the supplier, software-created orders can be faxed right from the computer (if the computer has fax software installed) or emailed to suppliers so that they receive it immediately. Of course, the software also allows purchase orders to be printed off in a professional format so that they can be mailed, faxed, or hand-delivered to suppliers as necessary.
Finally, when the order is received, it is easier to compare the receipts to the original order. The buyer simply goes into the original purchase order, matches it up with the receipt, and makes the appropriate notations. Most versions of purchase order software even allow you to note partial shipments. Then, the purchase order can be saved and can be easily accessed later if necessary.
Purchase Order Reports
Besides all of the benefits and uses listed above, businesses can also easily create reports based on their purchase orders. For example, if the company wants a report on the usage and purchase of ink pens, it can be created using the software and the records of previous purchase orders. Also, if a business needs assistance staying within their budget when it comes to purchases, the software can be set up to automatically deny orders that would go over the specific budget limitations.
Simplifying an Important Process
Purchase orders do serve a valuable purpose for businesses. They help them manage the flow of revenue from the company, and they help ensure that no unauthorized purchases are being made. They also help track purchases so if a supplier gets an order wrong, there is a clear record of what the buyer wanted. However, managing those purchase orders does become overwhelming, especially for larger businesses that may deal with hundreds of orders a week from dozens of different departments for items ranging from stationary to computers and plastic cups to leather chairs. Purchase order software helps simplify the process. The software helps connect employees and managers, assists with the tracking and reporting of purchases, and makes it easier to save and access purchase orders for later use.