September 17th, 2018 • Procurement Process • purchase order
Organizations waste way too much money and time pushing paper to process purchase orders. Retrieving meaningful insights is practically impossible because of the paper-driven process and disparate data blocks.
Conventional paper-based purchase orders end up complicating the procurement process. In a recent study by APQC suggested that depending on the industry, manual purchase orders processing can cost as much as $506.52 per PO (Source:SupplyChainDigest).
The true reason behind these inefficiencies? The process has remained unchanged for the past several decades despite the evolution of the business environment. It’s about time organizations move from their outdated purchase order process to a digital and modern approach.
Companies may or may not require a complete procurement system, but may certainly require a purchase order management system.
Once a purchase request is approved, it is converted to a purchase order by the purchasing team and an approval process is initiated.
In the approval phase, the purchase order is matched with the purchase request. Budget and document checks are performed.
After the approval of purchase orders, they are dispatched and forwarded to the vendor, provided vendor selection is already taken care of.
After receiving the shipment and the invoice, the purchaser performs a three-way matching to verify data consistency across documents (purchase request, PO, and invoice).
Once the purchase order is used for invoice approval and no discrepancies are found in the invoice, the purchase order is closed.
After closing a purchase order, the usual procurement process cycle follows.
Customize the purchase order process as per your organization’s needs with easy, drag-and-drop forms and advanced KiSSFLOW features. Add formulas, conditions, exceptions, etc.
Define the workflows, set permissions, make the apps live and get rid of papers, emails and sheets to manage your purchase orders.
View the status of every purchase order and quickly spot bottlenecks. Make real-time changes to create a seamless experience.
Use analytics, reports, and metrics to find new ways to make your PO faster, more accurate, and easier to use.
Purchase order automation will help organizations save a significant amount of time, effort, and resources. Although the cost per purchase order varies with industry, automation can decrease the processing cost and time by up to 75% per invoice.
An online purchase order system doesn’t just speed up the process and boost productivity, it also optimizes an organization’s spend culture.
A robust purchase order management software:
Automating purchase order management might have earlier taken months or years, but cloud-based workflow automation tools make the process a breeze. You can automate purchase order management in less than an hour with KiSSFLOW’s online purchase order software.
Moving your purchase order management process to a cloud-based workflow automation solution will make the process cost-effective and efficient. User-friendly purchase order automation solutions like KiSSFLOW can help businesses create a future-ready purchase order process. The digital forms in KiSSFLOW eliminate the need for paper forms.
In KiSSFLOW, automated notifications remove the need to keep track of the purchase orders manually. Customizable workflows reduce manual intervention in the process. The cloud documentation feature makes document storage, retrieval, and access effortless. Seamless API integration enables easy information interchange with other procurement software.
Still on the lookout for a purchase order management software that helps you take back control of your purchase orders? Take a look at KiSSFLOW, and see how easy it is to manage your purchase orders.