Developing a Purchase Order System for your Business
What is a purchase order system?
A purchase order system helps businesses manage and control their purchase orders and procurement process. Because managing procurement and purchasing can be a daunting task, it’s important to create a workflow that helps businesses manage their PO’s. Purchase orders are legally binding agreements between two parties, so it’s important for businesses to always deliver what was promised in order to prevent legal issues in the future. This can be difficult as your business grows and your manual purchase order process is no longer effective or efficient. An online PO system lets businesses easily automate and control spending to design a workflow that caters to their specific business practices.
Why use a purchase order system?
PO systems are easy-to-use and can improve productivity and efficiency among all team members of a business. While you may believe your manual process is currently working well, you’ll be astonished to see the benefits of a purchase order system. Here are the advantages of automating your processes with purchase order software:
There are some issues that can cause a breakdown in your purchasing process, prevent efficiency, and may even pause the entire process. If you’re doing things by hand, it can be hard to read certain handwriting and trying to read it could waste valuable company time. Lack of authorization might also cause a pause when a certain person has to sign-off on a purchase order. PO systems completely automate this process so that you no longer have to spend time waiting on another person to complete a PO and have it approved for another department.
Help Control Spending/Budgeting
With all of your spending right there in one procurement and purchasing system, you can easily track and control your spending. It will also come in handy for future budgeting so you can see just how much your company is spending and easily compare solutions to cut costs.
A purchase order system helps your business plan ahead. Because different departments will have access to the purchase orders in the system, team members from different departments can plan their workdays based on purchasing and procurement. For example, production can use tracking to make sure they’ve done their jobs correctly and efficiently without the need for supervision.
People make mistakes, but purchasing software does not. Whether a number looks like a six or an eight when handwritten, using an effective PO system completely eliminates these mistakes.
Your PO’s are legally binding documents and can help provide protection against future litigation, so it’s important you have them in a safe space where nothing can be tampered with or destroyed accidentally.
Improve Inventory Management
While you may manage your inventory in a number of different ways, purchase and procurement software allows you to more readily see what’s available in your inventory so when a customer makes an order, you know you have those items in stock, helping to prevent any unhappy customers in the future.
How to automate your purchase order system?
Whether you are new to the process altogether or plan to retire your current purchasing software, there are three things you need to do when automating your purchase order system.
Define Your Purchasing Policy
When you set up a new system to automate your current system, you need to take a look at your purchasing policy. Because your automated PO system will enforce your policy, it’s important you understand your own policy and revise and refine where necessary to make sure you’re getting all that you can out of your purchase order software. Reviewing aspects like who in the company has certain permissions and how vendors are selected can maximize your current workflows and help integrate an effective purchase order system.
Select Purchasing Software
Now it’s time to find the best purchasing software for your company. Most businesses will choose to go with e-procurement software because it is simply easier to manage and everything is backed up. This type of purchasing software provides easier organization, more control on spending, and lower costs. When selecting your purchasing software, it’s important that the system you choose has a great customer service team behind it, especially if you’ve never used a cloud-based PO system before. While setup is usually simple, you’ll want someone to rely on when it comes to helping demonstrate the new PO system to your entire team.
While it’s your decision to start with a completely new PO system, it’s best to start gradually implementing the new software into your business by allowing the most important decision makers at your company to use it first. They’ll be able to make sure the software is doing exactly what you need it to do without disrupting the entire procurement process.
You can depend on Bellwether purchasing software to simply and easily implement into your existing PO process. Your team may need a simple demonstration, but after that you will be up and running with a fully functional system.
Benefits of a highly efficient purchasing process
Because the purchasing system should be increasing your businesses productivity and efficiency in all aspects of the purchasing process, you’ll save money and allow employees to do more with their workday. Purchase order software also helps businesses reduce supply costs, cut administrative costs, and shorten the length of the entire purchase cycle.
Because the best purchase order software enables defined approval levels, your business will gain control of spending and make it easier for you to plan your budget. Managers will have greater transparency when it comes to spending at all levels and at every state of the procurement process.
With purchasing software, businesses can customize workflows to provide controls for budgeting and thresholds, and create a more refined workflow for each level of the purchasing and procurement process. Automating the process and creating these workflows saves time so that management can use their time to create beneficial vendor relationships.
Cloud PO Management System
With cloud-based purchase ordering software, business can access their system wherever they are so that they can review recent purchase orders at every step of the process while they’re on the go.
Topnotch All-in-One Purchase Order System
For 32 years Bellwether has provided the best value in purchasing and inventory software. With Bellwether Purchasing Software, you know you are selecting a time-tested partner that understands your needs now and in the future.
Our EPMX Software is for companies looking for a robust, fully-functional purchasing solution. It can be used across devices and is perfect for busy business owners who are always on the go.
Bellwether Purchasing Software easily exchanges and shares data with your other systems (ERP, CRM, MRP, etc.) allowing for a more automated, streamlined, and productive business environment.