Automated Purchase Order Systems: How They Work and Improve Efficiency
An automated Purchase Order (PO) System simplifies the process of creating purchase orders. By setting specific operational rules, these systems can automatically generate POs, ready for review. This significantly enhances efficiency within procurement processes.
Multi-Currency and Multi-Location Support
Modern purchase order systems offer versatile functionalities, including the ability to issue purchase orders across different locations – such as shops or warehouses – and in various currencies. This ensures that orders can be efficiently managed and executed no matter the location, improving the adaptability of your business operations.
Automating Currency Exchange Rates
Create purchase orders in different currencies and lock in exchange rates at the point of invoicing, minimising financial risks associated with fluctuating currencies.
Minimum and Maximum Stock Levels
To guarantee the availability of stock for fulfilling orders and selling to customers, automated PO systems allows you to set minimum inventory levels for each location, such as warehouses or retail outlets. When stock levels dip below these minimum thresholds, it will appear in a inventory management report, making it simple to process these warnings into purchase orders.
Inventory Management and PO Processing
Items can be selected to process into purchase orders using automated rules.
The system creates POs, making them ready for further actions like review, editing, approval and finally, submission to suppliers. This streamlined process ensures your inventory levels are always optimised for your business needs.
Audit Trail and Transparency
A robust PO system provides an essential audit trail and visibility into the status of all purchase orders and their corresponding deliveries.
- Purchase orders will remain as submitted until stock is delivered.
- Purchase orders may be “unreceived”, “part received”, “completed” or “closed”.
This transparency is crucial for maintaining accountability and best practices.
Detailed Reporting Features
Comprehensive reports should be accessible within the purchase order system, covering various aspects such as items not delivered, overdue items, expected deliveries in the upcoming days (7, 30, and 90 days) and items ordered by supplier. This detailed insight helps in planning and helps avoid any potential supply chain disruptions.
Click here for more information about Stok.ly Inventory Management
Call us on 01432 804333
Author: Iain Coplans CEO Stok.ly