Your procurement team needs all the help it can get in this highly competitive marketplace.
Your procurement-heavy company needs supplies and raw materials from the right places at the right prices so you can achieve the best cost-effectiveness for your production lines.
A digital purchase order generator can help in this regard.
Whether you use Excel or you want to generate a purchase order that looks great and has your logo on it, a digital purchase order generator is a valuable tool that can save your company time and money.
Take a look at why your company needs a digital purchase order generator and how it can improve your overall operational efficiency.
What is a digital purchase order generator?
It’s a software tool that produces everything you need for a purchase order that you send to your suppliers. A digital purchase order generator streamlines several processes so you don’t have to keep doing the same mundane, repetitive tasks over and over again.
A digital purchase order generator is usually part of a larger purchase order software package that automates a portion of your procurement process.
How does my company benefit from a digital purchase order generator?
Your company can streamline several processes thanks to a digital purchase order generator.
Does your company rely heavily on a robust procurement process as part of its successful business model?
You’re a perfect candidate for using a digital purchase order generator.
It lets your team generate purchase orders faster while reducing errors and double-checking.
For example, Smithco Smithing Supplies needs to buy 1 ton of iron to fulfill an order for making its world-class anvils. Smitty Smith needs to get the right information to the right supplier, so he uses a digital purchase order generator to help him out.
It’s better than filling out a form by hand because it reduces errors, and it’s faster. Smithco will get its iron faster because it uses digital purchase orders rather than traditional paper ones or even ones made in Excel.
Why are digital purchase orders important?
Digital purchase orders are a crucial segment of an overall procurement suite. It works with the program to generate standardized forms that already have vital information. Rather than spending time looking up vendor details, they are already there in the digital purchase order software.
How does a digital purchase order generator work?
Someone at your company simply goes to your chosen digital purchase order system through the password-protected portal, looks at the icon that says “Create New PO”, and then a standard form appears.
From there, you fill in several points of data without having to research them or know what’s what. The digital purchase order generator does the legwork for you by starting with a standard purchase order form.
It already has your business information prefilled in, like the name and address of the company, who to send the invoice to, the email of the person to contact in case there are questions.
After that, your staff can fill in pertinent information into the digital purchase order system using a series of menu choices for ease of use.
For example, Smitty Smith doesn't know where to get his 1 ton of iron. All he knows is that he needs it in three weeks or his orders will get behind.
He fills out the digital purchase order form using a drop-down menu of choices.
Vendor or supplier. Chooses the vendor or supplier by name. Now, more choices fill in on the digital purchase order.
The vendor he selects is Industrial Ironworks based in Ironton, Iowa.
From there, Smitty sees more information populate, such as the contact information of Industrial Ironworks and a drop-down menu of what he can order from them through this digital purchase order. It also generates a unique purchase order number (PO number) for easy three-way matching and verification later. The digital purchase order system makes it simple to track the purchase order number generated by the system
His choices include:
- Iron Ingots
- Iron Balls
- Iron Shavings
- Iron Flakes
- Iron Men
- Iron Bars
- Iron Hides
- Iron Frames
- Iron Beams
Smitty selects iron ingots.
Now, he sees another drop-down menu on the digital purchase order that shows him the quantities he can choose.
Quantities go by the half ton, starting with a minimum order of ½ ton and going up to 25 tons. It tops out at 25 tons due to shipping regulations in the United States that limit trucks to 80,000 pounds of gross overall weight.
Smitty then sees a price and even an expected delivery date based on Industrial Ironworks’ past performance. It includes the payment terms, which tells Smithco when to send payments to Industrial Ironworks.
After he looks over the digital purchase order, Smitty likes what he sees and sends it on to his supervisor for approval.
It took him all of five minutes to fill out the purchase order using the digital purchase order generator.
Using the right purchase order software sends an automated alert to supervisors as to spending limits and budgets, who made the purchase order request, any potential duplicate invoices, and potential discrepancies.
It also streamlines the purchase order process as part of a larger electronic purchase order system.
How does an electronic purchase order system benefit my company?
A digital purchase order system saves your entire company, not just the procurement arm, time and money when done properly. It does more than utilize a digital purchase order, which is a small segment of this type of system.
An electronic purchase order system offers several advantages that make your company more competitive.
Streamlines Final Approval of Digital Purchase Orders
Your electronic purchase order system gives you full control over who can make digital purchase orders and approve them.
Your digital purchase order system ensures that only the right people have the authorization to authorize digital purchase orders based on pre-set parameters.
Shortens Your Purchase Order Process
The administrator of the software has complete control over the digital purchase order process based on your company’s needs. Automatic routing of approval requests creates a digital audit trail for later use in case there are questions, comments, or concerns.
Every digital purchase order in your purchase order system outlines how your company will pay for the order and when with specific payment terms. This will set a deadline and expectations for your purchasing department to transmit funds to the supplier.
Shortens Lead Times
When you streamline the digital purchase order process, you receive your supplies faster.
Your suppliers probably utilize an automated invoice system to fulfill the purchase orders they receive.
Your purchase order software automatically sends each digital purchase order to your supplier in real-time.
Their accounts receivable software acknowledges the digital purchase order request, and then responds with an estimate as to when you might receive your order in full.
The digital purchase order request approval sends an alert to your finance team and accounting software to get ready to make a payment when your team receives an invoice from the supplier. Your logistics team knows when to expect a truck at the loading dock. Once the transaction is complete, the data in the system automatically performs a three-way match of the PO number with the invoice and accounting software. Then, your accounts payable team can handle the transfer of funds, even downloading every digital purchase order to the accounting software.
Make Financials Easier With Digital Purchase Orders
Vendors easily convert your digital purchase orders into electronic invoices with the data you send them. You obviate risks of billing snafus from duplicate orders or items you didn’t order. In turn, your accounts payable department and your purchase order system offer more accurate information than with a system that is just a digital purchase order generator.
Streamlining your purchase order process with a digital purchase order system reduces the time it takes to perform several mundane tasks. Your department can focus on other things, such as data analytics, sourcing analytics, and other high-level tasks in the purchasing process and approval chain.
Even better, your purchase order software matches everything with the purchase order number automatically. Your accounts receivable staff and the finance team no longer need to hunt down people for wayward purchase orders that escaped into the wild.
Your purchase order software and purchasing process outline what needs to happen based on controls you select.
Saves Your Procurement-Heavy Company Money
The key to growing your company starts with saving money and then streamlining processes.
Your purchasing software streamlines a lot of work, so your procurement team can spend their valuable time on making the supply chain more effective with ample supply chain management processes, including diversifying the supply chain, negotiating better terms with vendors to get discounts, expanding the supply chain, and finding efficiencies in the purchasing process.
Management doesn’t spend as much time tracking down purchase orders to verify the approval chain because it’s already there, just like a tracking number for a logistics company that says who signed for a particular package.. Instead, your team can make payments more effectively and even earlier, which helps you to manage cash flow and times to market.
Your purchase order software is only as good as the data it collects and analyzes. Management can use data in your purchase order system to make planning decisions, forecasts, spending limits, and department forecasts.
This is where a digital purchase order generator has its limits. It’s an elementary feature on purchase order software. It’s very easy to use, but it’s a very basic function and just a small part of your overall procurement process.
But even if it saves your staff three hours a week, that’s something.
Monthly budgeting becomes easier. Did certain digital purchase orders go through? Will the orders be here on time? If so, supervisors can manage labor costs and staffing levels.
You can also take into account busy seasons, such as winter holidays, for your production lines. Will you need to add an extra shift or hire temporary workers to take on that huge rush order you just received?
By having pre-set parameters in your digital purchase order system, you can prevent teams from exceeding a budget. This gives you time to plan effectively.
Teams can also outline the chain of command for approval processes in terms of upper-level access. If someone leaves, administrators can easily remove someone’s access to the system and approve the next person in line. That way, there are no questions as to who makes the final decisions on approvals within your electronic purchase order system. If something in the system changes, you can send out alerts.
Invest in the Right Purchase Order Software Now
ControlHub offers procurement-heavy startups a chance to get ahead of their competition by reducing the labor costs of a purchase order process.
Our purchasing software auto-syncs and automates several elements of the purchase order process, including:
- Sending purchase requests
- Receiving orders
- Matching purchase order numbers with invoices
Not only does this purchase order system save your company time, it lets you plan for the future, makes tax time and accounting easier, and allows your staff to focus on core business activities rather than mundane daily tasks that are still vital to the operations of your company.
Do you only need a digital purchase order generator? Ours is free to use! Just fill in the blanks, upload your logo, and you’ll have a gorgeous-looking purchase order in just a few minutes. No more messing with Excel templates or copy/pasting certain elements of the cells, columns, and rows. You can add your own logo to the purchase order generator to give it an official feel compared to spreadsheets of old.
If you outgrow our free digital purchase order generator at some point, talk to us. We would be happy to help you with a purchase order system.
Fill out our form to request a demo today. You won’t be disappointed.