To help get you started, we’ve created a checklist to guide you through executing the purchase order workflow. A simple checklist to get you going on the right path If you’ve already got an automated process in place, you can integrate the checklist with your existing processes to ensure that every step is being completed properly and on time. In this post, I’m going to introduce a simple yet powerful Process Street checklist, outline a few major reasons why paper-based purchase order management wastes time and money, and discuss 4 key benefits of an automated purchase order workflow We grow together, learning to leverage the resources that each brings to the table.” – Arlin Sorensen, Founder and CEO of the Heartland Companies “You will not become a sustainable growth company if you do not have building and nurturing strong vendor relationships as one of your core strategies. A recent report found that problems with vendors and suppliers are among the biggest risk factors retailers faced in 2017, and it is consistently cited as being a major risk factor for MSPs and the IT channel in general. This is absolutely essential to business success, especially for retailers and MSPs. Strong buyer-supplier relationships are essential for growthĪrguably more valuable than an increase in business efficiency is the development of strong, trusting relationships with your vendors. By establishing an automated purchase order workflow, you can centralize documentation, seamlessly track progress in real-time, and shorten purchasing cycles. The frustration and inefficiency that comes with managing piles of paperwork is no longer an unavoidable obstacle to overcome. For smaller companies, it’s do-able, just incredibly inefficient. Maintaining a paper-based system at the enterprise level is virtually impossible. That is a lot to keep track of for a single purchase.Īnd this only gets more complex as a business grows. However, this is not a good enough reason to forego purchase orders, hence the word “unwisely”.įrom creating a requisition to gaining approval and receiving an invoice from the vendor, there are up to 7 documents involved in the purchasing cycle.

Paperwork is a hassle and does slow things down. “Many organizations unwisely forego purchase orders because they perceive the paperwork to be a hassle that slows things down.” And yet, according to the founder & COO of Procurify, Kenneth Loi: The importance of efficient purchase order managementĮffectively managing purchase orders is a critical component of any business with vendor relationships.

Importance of purchase orders