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. A recent study by APQC suggested that depending on the industry, manual purchase orders processing can cost as much as $506.52 per PO.
Purchasing a variety of goods and services that support an organization to undertake its business operations is a common activity for the vast majority of companies. There are many steps to the procurement process. Embedding a good purchase order management structure plays a critical role in getting it right and a complete procurement solution can help facilitate the successful creation and fulfillment of purchase orders.
What is purchase order management?
Purchase Order Management is a standard procurement process practiced by companies to ensure that every purchase is relevant, rational, and cost-optimized. Many companies have well-established purchasing order management policies to ensure that workers observe standard operating procedures before procurement orders are completed.
How to manage your purchase orders with Kissflow
Kissflow’s comprehensive procurement management system has everything you need to manage your purchase order process with confidence. When you first start using it, it’s certainly worth taking a little time to customize its features to match your organization’s processes, using the simple drag-and-drop functionalities, as well as the built-in formulas, conditions, and exceptions for maximum ease.
Following this, it’s time to get started with implementing your purchase order process by structuring the workflows, setting employee permissions, and replacing all of your out-dated paper processes with automated ones. Naturally, your employees will require some training on the new purchase order management processes, but will quickly be using them confidently.
Kissflow’s intuitive e-procurement software allows you to easily monitor the progress of every purchase order in real-time. This feature will help you streamline your purchase order management processes and avoid issues and blockages that have the potential to cause disruptions to your business operations. Remember to take the time to review the performance of your purchase order management processes so that you can make tweaks to the system where needed and further enhance its efficiency.
Why you need a comprehensive procurement solution to simplify your purchase order management process
Attempting to manually perform your purchase order management process is possible. However, it has a number of downsides that can be easily fixed by investing in a robust procurement software. So, what benefits can a procurement solution offer your organization? First, it has the functionality to automate the vast majority of tasks and processes linked to your company’s procurement activities, from vendor and invoice management to the quick and easy creation of purchase requisitions and orders.
Specifically relating to purchase order management, e-procurement software is able to streamline the way purchase orders are raised in several ways. It can seamlessly transfer information from approved purchase requisitions straight into a template, making it ready to send to the vendor. Following this, it has the functionality to track the progress of purchase orders and compile all information relating to them in one easy-to-access place for maximum ease and compliance.
Core functionalities of a procurement solution
While there are a number of purchase order management software on the market, functionalities inevitably vary between them. Here are the most valuable key features that you should look for:
E-procurement software can support your business to raise electronic purchase requisitions from a range of pre-populated templates and route them automatically to reviewers, depending on the spending amount.
Following the successful approval of a purchase requisition, using a purchase order management system allows users to create one automatically. It is simple to use the information already supplied in the purchase requisition and submit it to the supplier.
You can choose from a range of ready-to-use template invoices for maximum ease and speed. What’s more, the system offers paperless approval options and a facility to store all confidential documentation pertaining to invoices securely in the cloud.
4.Vendor Management and Contract Approval
The system is capable of seamlessly integrating all information relating to your suppliers and associated documentation. This includes new vendor sign up and enrollment to ongoing review of supplier performance and tracking of spending.
Take the next step to automate and simplify your procurement activities
Kissflow offers a world-class purchase order management system that can make a real difference to your procurement activities. Since the system streamlines and automates the key processes for you, your team can spend less time on the administrative burden of purchase order management and more time on value-adding tasks. The system’s built-in processes can be perfectly tailored to your organization’s existing procedures, improving both speed and accuracy. Contact Kissflow today to order your free demo to see how their purchase order management system can automate your processes and help your organization succeed.