Purchase order management is not done easily, it becomes more complicated when they are done manually. Manual purchase request processes lead to more complications and error chances are more & accuracy compromises. They consume lots of administrative challenging work, time, cash.
Projects get deferred and disarray increments, and nobody truly realizes what is happening. That is why it is important to keep track of every purchase order efficiently & this is where purchase order tracking software comes into play.
Now what exactly is a purchase order and how can this software be helpful? That we will cover in this blog. So, without wasting any time, let us begin.
What Is a Purchase Order?
A purchase order is a legally binding document that is sent to the seller from the buyer if the seller accepts the purchase order. It informs the seller what is the requirement and quantity are also mentioned & when it must be delivered.
One major benefit of the purchase order is that the buyer does not have to pay in advance, it can be done later (as per discussion with the seller). In simple terms, the purchase order contains all the details of the requirement.
In huge organizations, purchase orders are created after the purchase requisition process is complete. Once purchase requisition is approved then purchase is created. Purchase requisition approval is mandatory in order to create a purchase order.
Each purchase order contains a unique identification number that helps in tracking order tracking numbers are helpful to both parties as the seller can keep track of payment whereas the buyer can keep track of purchase order status.
Recommend To Read: What Is the Objective of a Purchase Order System in an Organization?
According to Business Wire, “The global procurement software market held a market value of USD 5,635.6 Million in 2020 and is forecasted to reach USD 9,654.8 Million by the year 2026. The market is anticipated to register a CAGR of 9.4% over the projected period.”
What Purchase Order Information Is Mentioned in the System?
Mentioned purchase order information in the system:
1. Seller Organization name
2. Purchase order number
3. Brand name
5. Delivery date
6. Delivery location
How Can an Organization Keep Track of Each Purchase Order?
An organization can easily keep track of each purchase order with purchase order tracking software. Asset Infinity’s purchase order tracking software will enable you to monitor purchase orders and it will alert you whenever any new purchase request is raised, or any update occurs in the purchase order.
This software comes with a multi-level approval workflow so that no fraud or suspicious activity occurs in an organization. To save time purchase requests are converted into purchase orders directly. This software provides real-time information.
What Are the Main Features of Purchase Order Software?
The main features of purchase order software are discussed below:
Missed To Read: What Is Purchase Order Management & What Are Its Benefits?
1. Automated Purchase Order Creation
An organization’s lot of time is consumed or wasted when purchase order creation process were manual. This software saves time by allowing them to work in an automated way & also by centralizing information. So, it ensures that work is done quickly.
When purchase requisition is approved it automatically converts them into purchase order & within a few clicks purchase order can be sent to the vendor. Furthermore, automated workflow decreases human error chances and increases accuracy.
2. Cloud & Mobile Technology-Enabled
Cloud technology and mobile technology both are important features for an organization in order to stay productive. It speeds up the work procedure and one does not have to stay in the office as with mobile and cloud technology you can work on the go!
When you are away from your office you can easily work with cloud technology from anywhere and most importantly work does not suffer at all.
3. Alert & Notification
Alert & notification is a particularly important feature of any purchase order tracking software as it alerts you whenever any update occurs in the purchase order.
This feature comes in handy when you are away from your office as you can coordinate with the team as per the notification.
4. Multi-Level Workflow
A multi-level workflow decreases the chances of fraudulent activities. It has been seen that employees purchase items for personal use and add that to their company account.
So, this software will help you to know why goods are required so that unnecessary expenses are not done.
5. Reports & Analytics
Reports are helpful in gathering important information such as the average time for a complete purchase order. Which vendor provides good quality products and so on.
These types of information are helpful in businesses. Reports help in discovering shortcomings and you can overcome them with correct and informed decisions.
We know that each employee’s requirement must be fulfilled so that they can deliver more effective work. However, when an organization is not equipped with a purchase order system then it becomes hectic and that is why it is important.
It provides several advantages that make the organization more efficient. To make you more productive we have mentioned some major purchase order system benefits above. Unquestionably this software will be helpful and optimize your business procedure workflow in the long run.
Frequently Asked Questions (FAQs)
1. What Is a Purchase Requisition?
A purchase requisition is a form filled out by employees in which they mention their needs and requirements to work more efficiently. Then this form is sent to the manager which he either approves or rejects & justification is mentioned as well. If the manager approves it, then then it is sent to the purchasing & finance department in quantity is decided as per the budget and purchasing department cross-check if the product is available in stock. If it is available, then it is allotted and if not available then a purchase order is created. A purchase requisition is an internal document & a product is purchased on the behalf of the organization.
2. What Are the Problems That Occur in Manual Purchase Order Management?
Some of the major problems that occur in manual purchase order management are discussed below:
1. Long and hectic procedure
2. Error chances are more
3. Inaccurate information
4. No coordination
5. Less transparency
3. Are There Any Other Benefits of Cloud-Based Purchase Order Management?
Cloud technology makes you more. Efficient. As you can access the software from anywhere, anyplace. All you need is a good Internet connection. Moreover, it provides several other benefits such as security. It is the responsibility of the service provider to add security to data so that it is safe from hackers & suspicious activity. Furthermore, it is cost-effective as well. You can restrict users as per their level to keep data safe from insiders.