At some point, your business may need to purchase items or services from an outside supplier. Your orders will likely come with a record of your purchase from the supplier. What if your order doesn’t arrive on time or contains the wrong items? A purchase order system allows you to hold yourself accountable for the money your company spends.
What Is a Purchase Order System?
A purchase order system is exactly what it sounds like: a system used to keep track of your company’s purchase orders. You can expect to find the following details on a purchase order:
- Your purchase order number
- The date of the purchase order
- A list of the products or services purchased, along with prices
- Payment terms
- The address of the buyer
- The address of the supplier
Purchase orders give you access to all of the important details of your order in one convenient place. You’ll most likely have an increasing number of purchase orders to manage as your business grows. At a certain point, you may find that an effective purchase order system can help your business save time and streamline operations.
When starting out, some small businesses use a paper-based purchase order system. Eventually, most companies choose to switch to an automated digital system. Purchase order software makes it quick and easy for you and your staff to pull up the details you need without shuffling through paperwork — plus, you save time by not having to record that data manually. Want to see an efficient purchase order system in action? Schedule a demo with our team.
The Advantages of Purchase Order Systems
Setting up a purchase order system can have numerous benefits for your business, especially as it scales. With the help of a scalable, adaptable purchase order system, you can:
- Improve order accuracy: A purchase order creates a record of what you’ve ordered from your supplier. You’ll have easy access to item descriptions, prices, quantities and any discounts or special instructions. If there’s ever a dispute over an order, this information will come in handy.
- Save time and money: Once the supplier accepts a purchase order, it becomes a contract. Your employees won’t have to spend time verifying the bill. Instead, they can enter it into your system right away.
- Streamline your stock: A PO system lets you easily check current stock levels, stock on hold, free stock and reorder levels.
- Improve purchase management: When you use a purchase order system, you can see an outline of the costs of a given project before it begins. You can also link the goods you order directly to the project, allowing you to provide accurate quotes.
- Discover valuable insights about your best suppliers: A PO system shows you where you’re ordering most of your products from, what you’ve been paying and which suppliers take care of the majority of your needs. You can also keep track of which suppliers tend to let you down, whether through out-of-stock items or late deliveries.
How Finale Inventory Can Help
If you’re ready to change the way you do business, Finale Inventory can help. We know how to set up a purchase order system for a growing e-commerce business, and we’ll guide you through the process from start to finish. Contact our team to learn more about how our scalable, lightning fast software can support your purchase order system.