I’m sure you are one of those people who still trust the physical element of using paper-based purchase orders. Its tangibility dupes you into believing that you’ve got all your company’s purchases under control. But nothing could be further from the truth!
A lot of effort goes into planning a construction site. Just ask any construction CFO that has to submit analysis, projections and plans months before the project even commences. It’s no wonder the CFO is nicknamed Ruler of Results.
Not only is there a lot of planning that goes into the construction site before the project starts but there are also unforeseen pitfalls that occur after the construction site is bustling with work. For a construction CFO or project manager who is already on edge by having all their balls in the air, even the slightest thing going wrong would be too much to handle.
Why do I need to waste time on purchase orders! Why are there different ones to choose from?
A purchase order includes the details of the product you or your company need. It is filled out by the person in charge of purchasing who then authorizes the purchasing of goods and sends it to the supplier, so they know what is needed.
While there is an overlap between a Purchase Order (PO) and a requisition, they are as different as chalk and cheese! A PO Requisition is more of an internal document sent to approvers. And is not legally binding contract yet, as it is not sent to the suppliers.
The Business Dictionary defines Procurement Management as the act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. A business will not be able to survive if it’s procurement price is more than the profit it makes on selling the actual product.
Purchasing plays a crucial role in helping companies satisfy consumers needs faster. Consumers have become web-savvy, mobile-abled and a lot pickier than ever before. Companies that purchase goods faster are likely to keep them happy and generate more profit in the process.