SMBs usually already have limited resources and a lot of work to be done. Manually managing the purchase order process only adds more burden on team members and takes them away from their core responsibilities.
With purchase order software, you can automate the entire process, improve efficiency, and decrease the chances of any discrepancies which could occur due to manual entry.
While selecting the right purchase order software for small business can seem like an overwhelming task, it all comes down to what your business needs.
What is PO software?
PO software or purchase order management software enables companies to buy and pay for goods digitally by integrating all steps involved in generating a purchase order. Using it, purchase orders are automatically created, approved, and sent to suppliers, and all purchase-related documents are securely stored. This software simplifies the ordering process by giving you easy template options for creating your purchase order. Simply enter the item, quantity, and price information, and it will send the PO to your supplier.
How does PO software work?
With purchase order software, all your purchase information is in one place, reducing time spent confirming, validating, and managing purchase details. Using purchase order software, crucial information can be added beyond what is already provided to the supplier or vendor, resulting in accurate documentation of what has been requested or ordered. As you work on large projects, purchase order software can help you budget.
What are the major types of PO software?
There are two major types of PO software - one that handles direct procurement and another for indirect procurement.
A direct procurement process involves purchasing the products, supplies, goods, and services necessary to run your business. You acquire those essential products and services directly, with a little processing, so that they reach your end customers.
The indirect procurement process involves acquiring non-essential products and services that support a business' operations. They include office supplies, stationery, decorations, and so on. While they don't reach the end customers, Indirect supplies remain important for your business.
What are the core features purchase order software should have?
A purchase order (PO) is a document sent by the buyer to the seller, and it includes a summary of all the goods and services that the buyer plans to purchase from the seller.
It usually includes all the information an invoice contains, but it is sent before the goods or services are ordered. A purchase order helps set explicit and clear expectations and in turn, avoids any confusion that might arise later.
Creating a PO is only the start of the purchase order process, which includes several checkpoints and approvals to ensure timely PO processing. In most cases, a purchase order process includes:
- Generating a PO based on purchase requisition documents
- Getting approval for the PO after the budget and document verification
- Sending PO’s to the vendors or suppliers after approval
- Setting up a legally binding contract between the company and supplier
- Receiving goods/ services from the supplier and making sure there are no issues or defects of any kind
- Receiving the invoice from the supplier and matching it with the initial purchase request and purchase order
- Closing the purchase order after making sure there are no discrepancies
Here are some of the core features that the purchase order software for small business should have:
1. Automated workflows
You should be able to create customized automated workflows and tasks in order to create a seamless purchase order process. All the necessary approvals should be automatically sent to the relevant people and trigger the next step of the process.
2. Customizable forms
The purchase order forms for the automated workflow should be fully customizable so that you can modify the data fields and incorporate all the relevant data that you need to add to the purchase orders.
3. Automated cross-checking
The purchase order software should be able to automatically verify and match the data in the purchase requisitions, purchase orders, and invoices to avoid any errors.
4. Role-based access
You should be able to restrict access to certain parts of the process order workflow based on the user’s role within the organization.
5. Real-time reporting
The process order software should be able to offer visually rich reports and insights about how the PO process is being handled within the organization. The idea is to make it easy for you to spot any bottlenecks, delays, or inefficient parts of the process that could be improved.
Why Kissflow is the best purchase order software for small businesses?
Kissflow is a cloud procurement software that lets you manage the entire purchase order process right from purchase requisition to sending POs and clearing invoices.
With Kissflow, you can manage and digitize your entire procurement process, including purchase requisitions, purchase orders, vendor management, and invoice approvals.
An automated and cloud-based purchase order system like Kissflow can clear up all your confusing paper processes and make the entire purchase order approval workflow completely seamless and hassle-free.
Here are some of the many benefits using a simple purchase order software like Kissflow for your small business:
Benefits of using purchase order software for small businesses
Reduced manual intervention
By digitizing and automating the purchase order process, you are able to eliminate manual intervention of your team, which can in turn save time and reduce errors that occur due to manual data entry.
Saved operational costs
By using cloud-based purchase order systems, you can speed up the entire process and save up to 45-65 percent in operational costs for your business.
You can ensure complete transparency through the entire purchase order process and make sure everything is on track by viewing the status of all the open POs.
Kissflow – A customizable and flexible procurement platform
With Kissflow Procurement Cloud, you can issue purchase orders and automate the approval of purchase requests. Since it is completely customizable, you can create workflows according to the specific requirements of your business.
Take a look at Kissflow as to how it can improve efficiency and save costs for your organization.