Boost Purchase Order Efficiency Through Workflow Automation
Having to manually maintain purchase order workflow is the biggest pain when dealing with vendors. Businesses that require vendors for several materials and services will require a purchase order management system. Paperwork to track previous transactions and current transactions pile up and if a proper system is not given, expenditure tracking will not be properly documented. Hence, there is a need for automation.
What is Purchase Order Automation?
Automating purchase order basically involves creating a system that sequentially handles all tasks involved in receiving a service or product from vendors. When a clear process is established, all parties involved understand what will happen at what step of the flow. It helps track paperwork, which will, in turn, make it easier to keep the budget in check. The following are the usual steps involved in a purchase order process.
Creation and Requisition of Order
Creating an order with the required quantity and qualities of content and services to be delivered is initially made. The different specifications for the product to be procured are described in detail. The department responsible for this usually inputs the data needed depending on the type of software design.
Confirmation page to ensure that the right information is provided including delivery information, price, quantity, subtotal, and period for arrival. Confirmation of the order initializes the order for processing.
The order which is confirmed is sent through to the supplier through email. The automatic system can be built to directly carry out this task but in most cases, processing will involve contacting a supplier to get confirmation your order is in process.
Change and Editing
A supplier will consider an order received and check for inconsistencies and false inputs, correcting and relating back to a buyer. Notification of the change and agreement between two parties to a settlement will progress the purchase order for supply confirmation.
Tracking and Supply Confirmation
It is necessary for the automation of purchase order to contain a tracking information. This enables a buyer to have access to the state and location of a placed order awaiting delivery. Upon delivery, supply confirmation is done and the purchase order is confirmed.
One main purpose of automating this system in a manner of an appropriate workflow is to have stored information on every order and changed made. Storage of confirmed and delivered orders should be a component of an automated purchase order.
Why is Purchase Order Automation important?
Purchase orders require manual confirmation even while yet automated as described above. So the question of why it is important to automate this workflow is left unanswered. The following contains reasons why automation is necessary for dealing with vendors and suppliers:
Effectively Handling and Tracking Multiple Purchase Orders
Large corporations are able to monitor and handle multiple orders and track products.
Creating An Adequate Workflow
Responsibilities are assigned quite simply and in a less complicated manner.
Keeping Expenditure Records
Records of how much is spent on different products are kept and stored in a permanent safe form.
Improving Buyer-Supplier Relationship
Communication between a buyer and a supplier is managed and easier with an automated workflow.
In fraud and embezzlement cases, documentation of primary purchase orders is legally recognized.
Procurement Automation with Activity Factory
The purchase order process contains numerous processes and approvals that are hard to keep up with and track. However, this function is so crucial that committing errors may result in incurring bigger costs and lesser profit.
Activity Factory addresses a lot of challenges in procurement with its simple and effective approach to procurement workflows. Aside from Purchase Orders, it can automate other procurement functions such as invoice approvals, RFPs, and vendor approvals.
Activity Factory is a workflow automation tool that allows companies to build consistent and auditable compliance and operational workflows, ensuring that the right processes are followed at the right times while staying compliant.