Product-based businesses use purchase orders every day, but often overlook the value of purchase order platforms.
Purchase orders are documents or files businesses use to request a variety of product from a warehouse, wholesaler, or other seller. When accepted, purchase orders serve as legally-binding contracts between both parties. While purchase orders and invoices often contain the same information, the two are not the same. Buyers send purchase orders to sellers to specify amount and type of item at the price both have discussed. Sellers will sometimes prepare an invoice as a receipt of payment, or will send them with a payment due date.
Some companies skip purchase orders altogether to avoid the hassle of getting the orders together. At first, this can make the whole process seem easier. But when companies grow and vendor relationships become more complicated, product orders get mixed up more easily. No order to reference means more room for error, and more ways to lose money.
Businesses must have a system to keep track of their purchase orders, or they risk losing time, money, and vital vendor relationships. In short, they could lose their business altogether.
Traditionally, purchase orders have required an immense amount of paperwork and time. One purchase order often produces several documents, from the original requisition to the final invoice.
While pen and paper systems are better than forgoing any system, they are still prone to error. Paper can be lost easily, or accidentally damaged. It’s harder to identify duplicate orders and missed transactions, especially if documents are kept in more than one place. Maintaining a paper system also takes a lot of time and space to store and update.
Current technology makes it easy to digitize all of the purchasing process. Purchase order platforms make the ordering process more efficient for you and your business in several ways.
Keep Purchase Order Information in One Place
Having all of your information in the same place will help you reduce time spent searching for specific documents. When an employee or vendor needs to see a specific order, you won’t need to wonder where you’ve kept it.
Know Exactly What You’re Ordering
When you know what you’ve already ordered, you won’t run the risk of creating duplicate orders. Your suppliers will also have information to reference when they’re trying to fill your order. Neither of you will need to spend valuable time communicating order details when all of the information is available on a central purchase order platform.
Access Order Data
Having centralized order records doesn’t just help you during the ordering process; they also help you when you’re evaluating your company’s ordering habits as a whole. If you see your company is buying a lot of a particular product over the course of a year, you can take advantage of bulk discounts. Digital requests also reduce processing time by being added to a catalog. Some platforms allow you to store your settings, so you won’t have to enter the order each time.
Manage Your Money Better
When you know how much of which products your employees are requesting, you’ll also know how much your company spends each month on purchasing product. You can also easily identify areas to reduce spending, like duplicate or lost orders. Comparing purchase orders also helps you find the best price from the best vendor.
Asset Panda’s purchase order platform helps you track and manage everything about your orders. From prices to vendor relationships, you have a lot you need to keep track of in order to keep your business going. Our systems works around you, and stores your data in the cloud, so you don’t have to worry about losing vital information.
Want to check out our purchase order system? Request a free demo today!