A purchase order book helps you to accountably source materials from your vendor. But it takes much of your time and effort. Here’s what you need to do for better results.
All You Need To Know About Purchase Order Books
As a Director of Engineering, you get to build great systems and infrastructure that change the world. You can choose to create new products that redefine how we live or improve existing developments to perfection.
If you work for a fast-growing hardware startup, you know how important it is to keep things running seamlessly and acceptable inventory levels. You not only have to be perfect at your job, but you also have to work with other departments to develop great products. No one tells you that you will spend lots of time and effort ordering parts and components for your products.
Doing this is much more challenging if you use the traditional purchase order book or have a traditional ordering process. Savvy directors are now automating their purchase order process to reduce the amount of time they spend on the procurement to do more of what they love.
Exploring the traditional purchase order book
If you have been in the game for a while, you have probably used the traditional purchase order book to make a purchase request. This purchase order book features 2-part or 3-part standard purchase order forms that you must fill out manually. Each purchase order form has a white form and yellow duplicate with a unique PO number. These forms do not use carbon paper, but the details of the incoming orders get duplicated when you use a pen.
Filling a purchase order booklet takes quite some time and effort. You have to get details from a purchase requisition and use it to complete the purchase order form. The vendor receives one copy, and you retain the other copy for your records. If you have a triplicate purchase order booklet, you can send the third copy to your accounting or inventory management to keep track of the payment terms.
Some companies have more than three people involved in the purchasing process, and you will have to make copies of each purchase order form. Of course, many engineers feel that this is time-consuming and not related to their work. But failure to involve yourself in getting the suitable materials or knowing inventory levels will affect your end product.
Remember that the planned purchase order will require a couple more documents than just sending the order forms. Some of the related documents may include:
- Tax forms
- Purchase requisition
- Order approval from the vendor
- Communication memos of the purchase details such as po number or product specifications
- Invoices
- Copies of the po and forms in case of any corrections
Creating a contract purchase order may sometimes be easy, but this will slow you down if you have to make hundreds of them every year. Thanks to the availability of automated purchase order systems, you will no longer spend lots of time, effort, and paper on a manual ordering process that no longer makes sense. You also avoid making duplicate orders, which save you money.
Automate your procurement process: Say no to paper.
While the manual po process is quite tedious, embracing technology in your hardware startup can come in handy in several ways. However, this will not be a walk in the park for your startup business. You will have to update the technology you use and align internal business processes to the new technology when adopting a purchase order template. Many companies also need to have a cultural shift to realize the benefits of a planned purchase order system.
In return, your hardware startup will be more productive, prevent duplicate orders and increase efficiency in the procurement process. You will also be a more sustainable business with a lesser carbon footprint if you reduce your overreliance on paper. These are some of the gains you can expect once you adopt an automated purchasing process.
A flexible purchasing process
Automating your po process means that you can set up automated workflows for each of your purchase request. With this feature, you can create automated practices when dealing with a vendor or another purchasing department. And the good thing is that you can align these workflows with your internal rules and even legal requirements.
Managing automated incoming orders also allows you to create contingency workflows in case of any vendor problems. The good thing is that you can easily use a purchase order template to automate your procurement process. You can also create contingency workflows when you have high demands, one-time purchases, or spending large amounts.
Enhanced value in procurement
Perhaps one of the best things about having an automated purchase order system is its transparency and accountability. You can integrate your system with a purchasing department or even a vendor to ensure a good return on investment and even favorable payment terms. This allows you to ensure that purchases and spending do not spiral out of control.
It will also free you and your staff from unnecessary data entry to focus on doing what you love most, engineering.
Streamline your procurement process
Automating your contract purchase order process by creating workflows is a great way to enhance and streamline your purchase order process. For example, you will need to fill in details from your purchase requisition every time you use the conventional purchase order book. There is an automatic entry of information and integration with other departments that help with inventory management.
You will also have access to your new standard purchase order system globally due to its cloud-based systems, reducing backlogs and approval time.
The Significance of Purchase Orders Template in Streamlining Procurement
Harnessing the efficiency of purchase orders templates is akin to setting a foundational pillar for your hardware startup's procurement processes. A well-structured template not only provides a standardized format but also ensures consistency in capturing vital order details. With the dynamism that hardware startups usually display, any tool that fosters streamlined, repeatable, and error-free operations is invaluable. Such templates, when embedded within an automated purchase order system, become the bedrock for speed, accuracy, and scalability. In essence, while automation is the engine driving the procurement car, the purchase orders template is the blueprint ensuring the car is built to perfection.
Be more productive with the ControlHub System.
Procurement takes a lot of time and bandwidth, mainly if you still use the traditional purchase order book. While you need to always work with your vendor when outsourcing materials, you also need to be a great Director of Engineering. You can create an automated purchase order process that will allow you to set up a vendor, create & accept purchase orders, and even approve spending. Working with ControlHub is a sure way to get these and more benefits that an automatic procurement process offers. Just take the first step and contact us today for a quick consultation.
Summary
A purchase order book is a traditional way for Directors of Engineering to make a purchase request. It requires a 2-part or 3-part form with a white form and yellow duplicate with a unique PO number, and it takes a lot of time and effort to complete.
Automating the process with a purchase order template allows for more efficient and accountable procurement, with the option of creating automated workflows for each purchase request and contingency workflows for high demands, one-time purchases, or spending large amounts.
ControlHub is a purchasing software for hardware-centric, procurement-heavy companies that streamlines the procurement process and enhances productivity so that its users can get back to building.
Frequently Asked Questions
What is a purchase order book?
A purchase order book is a traditional manual system used to create and manage purchase orders. It typically consists of 2-part or 3-part forms that need to be filled out by hand. These forms include a white form for the buyer, a yellow duplicate for the vendor, and sometimes an additional copy for accounting or inventory management.
Why should I automate my procurement process?
Automating your procurement process offers numerous benefits, including:
1. Time and effort savings: Automation eliminates the need for manual paperwork, saving you valuable time and reducing administrative burden.
2. Prevention of duplicate orders: Automation systems can prevent duplicate orders, helping you avoid unnecessary expenses and wasted resources.
3. Environmental sustainability: Reducing paper usage by embracing automation contributes to a greener and more sustainable business practice.
4. Increased transparency and accountability: Automation systems provide enhanced visibility into the procurement process, promoting transparency and accountability within your organization.
5. Streamlined workflows: Automation allows you to set up automated workflows aligned with internal rules and legal requirements, streamlining the procurement process and reducing errors.
How can I automate my purchase order process?
To automate your purchase order process, you can implement a cloud-based procurement software solution. This software enables you to create and manage purchase orders digitally, set up automated workflows, integrate with other departments or vendors, and improve overall efficiency and control. By leveraging automation, you can streamline your procurement activities and reduce manual effort.
What are the benefits of using the ControlHub System for procurement?
The ControlHub System offers several benefits for your procurement process:
1. Automation of contract purchase orders: ControlHub allows you to automate the creation, acceptance, and approval of purchase orders, saving time and improving efficiency.
2. Vendor management: You can easily set up and manage vendors within the system, ensuring smooth communication and collaboration.
3. Enhanced control and transparency: The system provides greater visibility into your procurement activities, facilitating better control and decision-making.
4. Accessibility and flexibility: ControlHub is a cloud-based system, allowing you to access it from anywhere and at any time, providing flexibility and convenience.
5. Integration capabilities: The system can integrate with other software systems, such as accounting systems, enhancing the overall procurement experience and ensuring data consistency.
How can I get started with the ControlHub System?
To get started with the ControlHub System, simply reach out to their team for a quick consultation. They will guide you through the implementation process and provide you with the necessary information and support to optimize your procurement activities. Embrace the power of automation and take control of your procurement process today with ControlHub!
