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Purchase Orders Don’t Discriminate Against Size

One instance where size does not (really) matter.  Whether you are a small business owner or CEO of a global company, purchase orders are an integral part of your business, you adjust them to fit your organization’s needs.

Small Businesses – When you have a small business, let’s say a guesthouse with 25 employees or less, being able to multitask would be a prerequisite for staff members. Also for that reason it would be more advantageous for the business and employees to choose a purchase order system designed for simplicity, seeing as  there are no dedicated purchasing staff. Let’s face it, some people are technologically challenged, thus simplicity is key here. Employees can focus on more than one task rather than spending their time populating purchase orders.

Some small companies still prefer the ancient, Shakespearean way of having their purchase orders written down with an ink bottle and quill, (Swan quills were apparently the best, but who would approach an angry swan and further its foul temper by pulling on its tail?). However due to the unreliability of spreadsheets and outdated ledgers,  it is advisable that businesses get an automated, dedicated purchase order system (there are just some things that computers excel at that humans do not). That way they have better control of where the company’s money is going, assess company performance, cut down on fraudulent activity, create budgets and financial reports and an all round end to wasted spend.

Medium Sized Business – When we reach the employment mark of between 25 to 100 employees, you are categorized as a medium sized company and more consideration should be given to the logistics and procurement network. For companies this size it is absolutely advisable to have at least one dedicated purchaser, usually in the accounts or finance department. The purchaser and the business owner need to work together as the owner would have the only authority (in most cases) to approve purchases. This method streamlines the whole procurement process and reduces any chance of doubling up on orders and “he said, she said” scenarios, especially if the same vendors have been used over time. An automated system can create fault-free purchase orders in no time at all, freeing them mere mortals up to do what they do best, which include but are not limited to handling special orders and identify vendors who can offer better prices than the closest competitor. However, on the negative side, if the purchasing agent works alone and only needs to report and answer to the owner, issues such as inaccurate orders and misuse of systems will arise. Humans are quite error-prone when it comes to routine and entering purchase orders containing the same information time and time again would confirm that fact.

Large Organizations – For large organizations that have more than 100 people in their employment it presents significant risks if all aspects are not managed effectively and monitored continuously. Thus, it goes without saying that the procurement department will only function properly if sufficiently staffed. Because of the size of the larger organizations it is important that more attention is paid to the procurement department as they are usually responsible for filling out and tracking purchase orders. The electronic purchase will help them make projections, track inventory and handle special orders including international transactions. Not a job for a sole individual.

An amalgamated purchase order will enforce communication between the management and employees, curb any duplication and alleviate blunders. Procurementexpress.com is a purchase approval system that contorts to your company’s needs, not the other way around. Book a free demo to find out more. The system will also provide reports anytime, anywhere.. Simplicity of purchase orders makes it possible for both the smaller operations and larger companies to review their status quickly.

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