The fluency of your approval process plays a very important role in determining whether other related processes get delayed as well. Approvals for purchases are a very important part of any business.
To enhance the productivity of your team you need to increase the efficiency of your processes.
“More business is lost every year through neglect than through any other cause.” – Rose Fitzgerald Kennedy
Why are there so many jokes about Purchase Order Managers? They even brought out a ‘best of’ book about it(The Best Ever Book of Purchasing Managers Jokes). Your purchasing is one of the fundamentals of a company. It’s a very important role, as it deals with the company’s capital.
There might be different reasons why people make these jokes. Purchasing Managers tend to keep to the budget and have strict rules that need to be adhered to. Maybe it has to do with the human factor, or maybe they are just underrated.
Purchase orders serve a valuable purpose in any company they have extensive company benefits and can be one of your biggest assets. They help you keep track of who is purchasing what from where. Keeping track or even completing just a 100 purchase orders a day can get very challenging even for a very organized purchase manager, let alone doing thousands. It’s a lot of info that has to be noted on one form. Continue Reading
Your outdated system is stunting your growth. You might not realize it or might avoid the ugly truth, that your paper-based purchase order system is keeping your business back from a healthy bottom line!
Let’s look at the process of a paper-based system
- The buyer realizes the need for a product after checking or being notified by the inventory system or a specific department
- The purchase order is written out or printed and given to the approver to get the golden signature
- The purchase order is mailed to the supplier, after which the supplier manually enters it into their system
- The supplier prints out an invoice and sends it back to the buyer by e-mail
- The buyer pays the invoice and notifies the supplier by Proof Of Payment
- The buyer enters the invoice manually into their system
- The supplier finally sends the shipment to the buyer