More organizations are implementing purchase order automation…but why?
Automating purchase requests can have a big impact on an organization. Join us as we evaluate the value of automating purchase requests in today’s environment.
What is Purchase Order Automation?
First, let’s talk about what exactly “purchase order automation” is. By definition, purchase order automation is the process of creating an automatic flow or process to handle purchase order requests.
For example, let’s say Cindy needs a new computer. She submits a form indicating her existing computer is broken and request a new computer from a pre-approved catalog. Depending on the purchase order automation in place, this may go to the appropriate person for approval or perhaps it would just be automatically ordered if it is below a certain dollar threshold (depending on the organization and the workflow set up).
Each organization’s process may look a little different depending on their needs, but proper purchase order automation will involve all of these components:
- Submit a request
- Notify approver(s)
- Track progress
- Generate purchase orders
- Manage fulfillment
- Implement a purchasing bot in Teams
In other words, the specific criteria can be tailored for your organization. However, these core elements should all be part of a good solution.
Why Implement Purchase Order Automation?
Let’s dive into it and start with the biggest reasons organizations automate purchase requests:
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Streamline the approval process.
Many organizations elect to implement purchase order automation to track and record all activity involved in this process. Implementing this kind of solution allows you to see at glance the status of each request and what is required to move it along.
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Save money.
Keep track of inventory already on hand to prevent redundant purchasing. By keeping clear tabs on items along with records of previous users of each item, you can increase accountability and ensure items do not go missing.
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Improve data.
Review analytics and records on spending and needs. By having a clear record of which items were purchased when, why, and at what frequency, organizaitons can identify opportunities to reduce costs or catch excessive requests before they get out of hand.
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Reduce errors.
Without a PO (purchase order) system, staff may be pressured from management for order delivery. Coupled with manual entry, this increases the risk of errors. When under pressure, staff may also be tempted to bypass certain key steps in the order requisition or authorization procedure, but automating this process takes out the need for manual entry and helps preserve accuracy.
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Replace inefficient request/voucher systems.
If you are currently using paper forms, InfoPath, or other legacy tools, there is a lot of room for improved speed and accountability. It is time to update these outdated forms to keep up with modern times.
Essentially, organizations automate purchase requests for many reasons – to streamline the approval process, save money and time, reduce errors, and replace inefficient systems. Ultimately, automating the purchase request process can have many benefits, but often one or two key benefits are what drive an organization to make the decision to modernize.
How to Implement Purchase Order Automation?
So, there are many reasons to implement purchase order automation. Great…but how do you do it?
Implementing a purchase order automation solution in an environment users are already familiar with can greatly improve adoption. For example, most organizations use Microsoft Office 365, Teams, and/or SharePoint. By leveraging this environment, you can eliminate the need for additional logins and make it easier for users to adopt company-wide. The easier it is to adopt, the more successful it will be.
That’s actually why we built our own solution to work directly in your M365, Teams, & SharePoint environment. Our specialty is providing solutions that are easy to implement and adopt. We have seen firsthand just how valuable proper purchase order automation can be. Learn more about how it works here.
Conclusion
Overall, purchase order automation can have a big impact on an organization when implemented properly. More organizations are moving to reduce errors and streamline this process. If you find your organization is still relying on paper forms or spreadsheets, it is time to update your process. Eliminate the manual touches and take advantage of the benefits of automation.
Speak with one of our automation specialists today. With over 24 years experience automating essential business processes, we are here to help. We know purchase order automation well and are here to help you make the right choice for your organization.
See our #1 purchase order automation solution in action here:
