Tags: Procurement automation, Purchase Order, Requisition

Boost Purchase Order Efficiency Through Workflow Automation

 

Having to manually maintain purchase order workflow is the biggest pain when dealing with vendors. Businesses which require vendors for several materials and services will require a purchase order management system. Paperwork to track previous transactions and current transaction pile up and if a proper system is not given, expenditure tracking will not be properly documented. Hence, there is a need for an automated workflow.

 

What is Purchase Order Workflow Automation

Automating purchase order basically involves creating a system which sequentially handles all tasks involved in receiving a service or product from vendors. The system is ultimately computerized and follows through

  • 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

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.

  • 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 automation of purchase order to contain 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.

  • Storage

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 order should be a component of an automated purchase order.

 

 

Why is Purchase Order Workflow 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.

  • Legal Documentation

In fraud and embezzlement cases, documentation of primary purchase orders is legally recognized.

 

 

Procurement Automation with Activity Factory

 

The purchase order process contain numerous processes and approvals that are hard to keep up with and track. However, this function is so crucial that committing errors result to bigger costs may result to 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.

 

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Activity Factory is a workflow automation software designed to help organizations spend less time on tedious manual process by automating the execution of business processes and eliminating paper forms, manual routing and approvals.

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