If you are still using a paper-based manual purchasing process, the chances are you are drowning in documents every day. In average, businesses need to process five to seven documents, including purchase orders and invoices, throughout the procurement process. That’s a lot of paperwork to generate and monitor just for one purchase.
This entire process is crucial but is also extremely time-consuming. That being said, below are the top reasons you should consider automating the process using a cloud-based purchase order management system:
You could easily generate and share purchase orders and requisitions.
You will not have to worry about formatting since it is already preprogrammed. You could even send POs and requisitions in various formats.
You get approvals faster.
With a purchase order management system, you could quickly send requisitions to the individual tasked to approve them. When you have assigned an individual to approve orders, he or she would receive all requests for approvals, which in turn triggers the generation of purchase orders.
You could have access to all the information you need at any given time.
All documents relevant to your entire procurement process would be centralized and easily accessible from virtually anywhere. You could also see critical PO process moments such as approvals or rejections of requisitions, which orders are pending, etc.
Purchase order software typically comes with analytics and insights.
These tools could aid you in managing your spending more effectively. For example, you could see how a certain requisition could affect your budget prior to approval.
Put simply, yes, record keeping is crucial for efficient and effective purchasing processes, but creating and managing paper-based records is just time-consuming. Documents could be misplaced or damaged, and it is also harder to spot duplicates with paper documents, costing your business money and time.
On the other hand, using a cloud-based management system would help your business save time, money, reduce errors in the PO process, and make certain that you are operating within your budget.