What if the person who could authorize the request was on vacation? Purchase order management software will send the requisition form to another person. That scenario we mentioned above might have taken a week or two to resolve using traditional paper forms. Who made the request? Did the person make a note explaining why the purchase requisition is necessary? Can someone flag the supplier as being faulty because of defects or higher prices? Who approved the purchase order request? From the initial purchase requisition form to approval through to acceptance by the supplier to paying the supplier invoice after an automated three-way match process, purchase order software streamlines this part of your procurement process while reducing errors and creating automatic oversights. It is NOT accounting software, which has limits on its reporting. You can track a purchase requisition request from start to finish with purchase order management software. Easy Tracking With Purchase Order Management Software He looks over the electronic purchase order, makes sure the request is legit, and authorizes it for the price stated. Purchase order management comes into play when the purchase requisition request goes to the supervisor’s manager, the lead engineer overseeing five production lines. In just 15 minutes, he can see the refund amount he should get, requests logistics to ship the defective hex bolts back to the supplier, and approves the purchase requisition for a new batch of hex bolts as a rush order to get in three days, when the line gets back to normal. The lead engineer knows that he can get a refund from the supplier because he can see the contract right there in the purchase order software. Upon getting to work at 7 a.m., the lead engineer for the production lines sees the alert for the requisition and the note left by the supervisor explaining why this is a problem. Knowing where the previous order came from by looking at the label on the crate, the supervisor easily chooses a different supplier. One of the supervisors, who works on the third shift, fills out a purchase requisition form to get a rush order of more hex bolts from an alternate supplier. Then someone needs to contact the supplier about the defective hex bolts. The QA department needs to pull the defective equipment you just assembled off of the line, and your team has to empty out any of the defective hex bolts that are already in your equipment and ready for assembly. Halfway through the crate, as your team gets down into the layers of the hex bolts, a line supervisor notices defects that prevent your machinery from screwing in the hex bolts properly. For instance, a huge crate of 20,000 hex bolts looks great upon the initial inspection once it arrives at your facility. Purchase order management talks about the part of your procurement process that lets your staff easily check whether each purchase is necessary, justified and optimized for your cash flow, budget and future projections. In this article, we'll explore the benefits of automating the purchase order management process and how it can help companies streamline their operations, reduce errors, and save time. However, automation can help turn this headache into a breeze. This is especially true for companies with a high volume of purchases, as manual processes can result in missed deadlines, miscommunication, and even lost orders. From creating purchase orders, to following up with suppliers, to monitoring the delivery of goods, the entire process can be time-consuming and prone to errors. For companies in the hardware-intensive and procurement-heavy industries, managing purchase orders can be a real headache.
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