So, now your business is taking off and growing fast. Congrats! You have great customers and established relationships with a line of vendors. But are you able to get the best prices from your vendors? And what about shipping costs? With every transaction, every dollar spent you need to maximize your return and get the most value possible.
Getting the best deal
As an owner of a fast-growing business ACME Sprockets, you’re on a tight budget, and you’re watching every dollar, trying to oversee every purchase order that goes out to ensure that you’re getting the best deal every time. Of course, you may have a manager in one department who’s calling for half a pallet of new sprockets because he just knows that his favorite customer will want them. Still, another team member is adamant that he needs his own large quantity of sprockets to fill a new customer’s order. Using a Purchase Order system will allow you to consolidate orders and avoid over purchasing while ensuring you are getting the best deal possible.
[Related: The Benefits of Reliable Inventory Management]
The value of a formal purchase order system
Any company, especially a new one, can benefit from a properly established purchase order system. Once you’re set up and ready to go, your new P.O. system will…
-
Provide an approval mechanism before purchases are made. So you know someone’s accountable and signing off on each purchase.
-
Provide a platform for documenting the best vendor price, terms and delivery times. Imagine the peace of mind you’ll experience with every order, knowing you’re getting the best deal.
-
Provide solid documentation of all items, quantities, pricing, delivery dates and shipping and payment terms. So that large, periodic consolidated order can be properly allocated to the departments who originally requested them.
-
Allow for a separate receiving function to ensure the items were received in good condition. You’ll know exactly who received, inspected and approved every order, every time.
-
Provide a match to the vendor invoice to ensure the agreed to pricing was on the invoice. No more delays in payment, and no risk of straining your valuable client/vendor relationship with late payments resulting from lost invoices.
-
Provide the ability to analyze vendor on-time performance and the quality of their items.
Once in place, your Purchase Order system will promote efficiency and drive productivity in every facet of your new business.
Gravity Software® (Gravity) successfully manages the whole Purchase Order process end to end so you can tackle what really happens in the real-world. Gravity’s cloud-based accounting software is written on the Microsoft Power Platform (aka Dynamics 365 CRM). By utilizing the Microsoft Power Platform, Gravity makes it simple for businesses to operate from anywhere without all the startup costs associated with other accounting applications. Learn more and schedule your online demo today.
Gravity Software
Better. Smarter. Accounting.
