The Benefits of Using Electronic Purchase Orders
How has your company’s purchase volume changed over the past couple of years?
Suppose your business has been using a paper-based purchase order (PO) system for seven years, and during this period, it has experienced slow growth. What are the chances that your system has something to do with it?
The best way to find out is by benchmarking your business against that of your competitors. If they are using an electronic purchase order and seem to progress way faster than yours, then there is probably something wrong with your current system and you ought to consider replacing it.
This may sound like a big addition to your expenses but l am going to show you how electronic purchase order software saves companies millions and helps them generate more. But first let’s address the primary reason why your business still uses paper-based POs:
There are certain tools and processes that businesses like yours use that become very familiar and comfortable over time. This includes things like old production machines and old technology that are inefficient and may even be harmful to the environment. Your reason for clinging to these outdated tools is, “because we’ve always done it that way.”
You can’t push the boundaries of your comfort zone unless someone shows you how the familiar methods no longer benefit your business. For example, it’s hard to realize how much limited your paper-based system is until someone comes along and shows you the efficiencies of a paperless electronic system.
Let’s be honest, there’s no comfort in filling your desk with papers that are haphazardly stacked. Yes, most businesses still print documents every once in a while, but a PO does not need to be one of those documents.
What would your justification be for using a paper-based invoice and PO? They take long to print, fill and approve, and the time wasted may affect your company’s ability to generate more income.
Tweet this: Electronic systems help companies control costs through a variety of ways
How electronic POs impact businesses success
Electronic purchase order software help companies control costs through a variety of ways, including PO and invoice approvals, and control and tracking features. A study by the Institute of Financial Operations (a nonprofit institution) discovered that:
- Companies using electronic systems report a decline in invoice and payment errors;
- More than two-thirds of those companies experience a decline in fraud; and
- PO-based invoice vendors have increased by 52.83%.
Further benefits of using electronic systems include:
No geographic limitations
The main benefit of automating purchases is that there are no geographic limitations involved. You can approve or reject POs anywhere, at any time; it has become a one tap/click process
An electronic purchase order software such as Procurementexpress.com allows designated approvers to view PO requests made by staff members no matter where they are. It also lets you suggest changes on POs by making comments, or by simply rejecting a PO and asking a staff member to recreate it.
It improves accountability
Accountability is the cornerstone of profitability and business success. An electronic purchase order helps keep your staff members accountable in various ways that a paper-based system can not. One is by forcing them to spend within budget as the software alerts them before they can go over budget.
Also, any duplications of invoices or other discrepancies are addressed in real-time. Fraudsters do not stand a chance with electronic systems such as Procurementexpress.com as the software gives you total control over purchases. Accountability with this system can become as natural as breathing! But not until you make budgeting easier as well.
It’s easy to budget
You won’t be able to budget efficiently unless you can monitor spending. A budget is a tool that helps your team to realize your organizational objectives. Procurementexpress.com makes this possible because it helps you set a spending budget and limits all purchases made to the confines of that budget.
This is what Senior Manager from Ngee Ann, Hsien Yong has to say about Procurementexpress.com: “We have been waiting for someone to come along to develop this software. It’s easy to setup, simple to use and allows companies to keep track of their expenditure. We’ve been very happy and just want people to know about this great software.”
Want to revolutionize your purchases? Sign up for a free trial today!