Best Digital Purchase Order App for Your Business
Seamless Purchase Order Processing with Purchase Order Application
As organizations grow, their key business systems need to scale up to meet increased business demands. Manual business systems lack the flexibility and scalability to adapt to growing business needs. Progressive businesses need automated business systems that can scale up to their changing business needs.
Among the business systems, the procurement system has a direct bearing on organizational spending. Purchase order and invoice order processing are two main components of the procurement system. Deploying a purchase order software streamlines the procurement workflow in the organization.
Purchase Order App
Purchase orders are documents that are sent to the supplier requesting the delivery of an order. All the specifics of the purchase request, such as the description of the order, quantity of items, PO number, payment terms, conditions and policies to be adhered to, are outlined in the purchase order. Once the vendor accepts the PO, it becomes a legally binding document.
All through the purchase order processing the PO is used as a reference document. Any issues relating to the order can be resolved with reference to the terms and conditions outlined in the purchase order. Smooth fulfillment of the purchase order depends solely on the purchase order. The main steps in the purchase order processing are listed below:
- Creation of a purchase order
- Review and approval of the purchase order
- Sending PO to supplier
- Accepting the PO (becomes a legal contract)
- Delivery of goods as per PO
- Receiving goods/services and inspection
- Raising a purchase invoice
- 3-way invoice matching
- Approve and arrange for payment
- Closure of PO
It is important to understand the main steps of purchase order processing in order to design a purchase order mobile app. Purchase orders are the only way businesses can track purchases and protect the business legally in case of any issues with the supplier.
Purchase order workflow is the lifecycle of a purchase order, from creation to closure. A well-defined purchase order enables smooth PO processing without missing out on any steps.
Why do you Need a Digital Purchase Order Application?
Startups or small-sized businesses may be able to manage the procurement process with a manual system, but as a business expands the need for a reliable and robust purchasing system increases. A digital purchase order processing system enables the procurement team to manage large order volumes efficiently.
Here is why you need a purchase order app:
1) Handling larger order volumes:
Growing businesses need to handle increasing order volumes without any expansions to the team. A digital purchase order system automates the mundane, repetitive steps in PO workflow, which relieves the team from performing admin tasks. Managing purchase orders through an online purchase order Application helps track and control each purchase order accurately.
2) Invoice matching:
Subsequent tasks in the PO workflow like invoice matching and invoice approval can be executed more accurately through the purchase order app. The data on the purchase requisition, purchase order, and invoice needs to match consistently. Manual methods of matching take a long time and are prone to errors. A purchase order app helps match requisition data against POs and invoices quickly and more accurately.
3) Compliance management and audits:
Manual procurement systems run on paperwork. The chances of damaging or misplacing important documents are high in manual procurement processing. Using a purchase order app helps the procurement team document the entire PO lifecycle. The app can automatically fill purchase order forms by drawing data from the purchase requisition. Accurate documentation ensures compliance with company policies and regulations and that the procurement system is always audit-ready.
4) Employee satisfaction:
Repetitive and low-value tasks are taken over by the purchase order software, which gives employees more time to spend on strategic work. Employee satisfaction goes up as they are happy spending more time on productive work.
5) Cost and time savings:
Deploying purchase order software streamlines the purchase order workflow by cutting out extraneous and repetitive steps. This shortens the entire PO lifecycle and saves costs.
Deploying purchase order software simplifies and streamlines the purchase order processing lifecycle. The purchase order app allows the procurement team to create POs effortlessly and track and update them from anywhere at any time.
Deploying the Digital Purchase Order App
In addition to overcoming the drawbacks of manual processing, purchase order software optimizes the entire process workflow. Developing the digital purchase order app requires a complete understanding of the existing workflow.
Here are the steps to designing a purchase order application:
1. Creation of forms/templates:
The first step in creating a digital PO system is the creation of digital purchase requisitions and purchase order forms. These online forms can be created from scratch or automated PO templates can be used to gather information for creating the purchase order. Once the PO form is created, the purchasing team can modify the form for the auto-generation of purchase orders from purchase requisitions or display the vendor list automatically by linking the PO form to the vendor database.
2. Mapping the steps:
The purchase order process varies in every organization based on the policies and business requirements. A thorough understanding of the process flow and tasks is essential for designing an optimal process workflow. The various steps of the process need to be mapped with help of a workflow diagram. Process mapping helps identify redundancies and process bottlenecks.
3. Designing the new workflow:
The digital PO form helps in understanding the tasks that need to be included in the workflow. The workflow can be designed for gathering data, validating and matching data, and automating the approvals. The purchase order app can also be designed to send automated alerts and notifications to the approvers in case of any delay in approval or intimating them of approaching deadlines.
4. Defining access and roles:
The purchase order app must specify the roles and access permissions of the stakeholders. Depending on the role played by the person in the purchase process, roles and approval permissions are assigned. The visibility and access to data may vary according to the role.
5. Implementing the PO workflow:
Purchase order forms are ready, workflow mapping is done, and roles and access control are in place – the next step is implementing the new workflow. Before implementing the workflow, all the stakeholders need to be updated about the changes. In some cases, the procurement staff may require training on the usage of the purchase order software.
6. Review and feedback:
The success of implementation can be gauged by review and feedback. Gathering feedback from the user and modifying the system according to it improves the success rate of implementation.
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Features of Purchase Order App
How to choose the right purchase order app for your business? The procurement automation market is flooded with apps for businesses of all types and sizes. Choosing the one that suits the unique needs of your business is challenging. Here is a list of must-have features for the purchase order software:
Mobility and flexibility
Anywhere, anytime access to the purchase order app from iPad, Android devices, or PCs is a must. This feature enables approvers to review, update and approve POs at their convenience. As the business grows, the app must enable the addition of features (as required) and scale up to increasing business demands.
The software must be customizable as per the requirements of the business. The reports generated by the software must customizable according to the business needs and provide useful insights to the leadership. The data capture must adhere to the company’s terms and conditions and regulatory policies.
Support for multi-currencies
The purchase order app must support multiple currencies and allow custom exchange rates.
Easy Document upload
The purchase order app must support the hassle-free upload of supporting documents while submitting the purchase order.
Safety and security of data
Sensitive financial data in the procurement system must be handled in a highly secure manner. Access to this data must be restricted and permission granted as per the role of the person.
The primary aim of implementing the purchase order software is to eliminate process bottlenecks. Issuing automated alerts and notifications to the approvers helps avoid delays and bottlenecks in order processing. Notifying the appropriate approver of an approaching deadline helps in accelerating the approval process.
Easy to use
Users must be able to access the purchase order software online without lengthy login or sign-up processes. The user interface must be kept simple so that users can understand its usage without extensive training.
Cflow is powerful workflow automation software that provides advanced features in purchase order processing. Our purchase order app is free from cumbersome coding and can be deployed within minutes. The easy-to-use visual form builder enables users to build custom PO forms within no time. To take a look at how Cflow enhances purchase order processing, sign up for the free trial today. Give your business the advantage of the best purchase order workflow app by signing up for Cflow.
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