Are purchase orders really a relic of the past or do they still provide benefits for today’s modern companies? Once you check out these 10 reasons why they’re here to stay, you won’t have to question any longer.
- Document Everything
Having things in writing is a basic rule of business. It’s about protecting yourself and having a paper trail for future reference. Purchase orders are an important part of the process.
- Simplify Receipt and Labeling
If you add your own SKUs or labels as items come in, referencing your purchase orders means you can get things labeled and stored quickly and easily without needing to hold onto an invoice.
- Spot Problems Easily
Using the Purchase Order to double check your shipment means you’ll be comparing what you receive to what you ordered. That’s something a vendor generated invoice isn’t likely to include.
- Flag Backorders Right Away
Backorders are easier to spot when referencing a purchase order. You can make notes on the order itself as well as in your purchase order software for small business.
- Track Orders for Years
You can track orders and what was delivered for years, making it easy to spot vendors that routinely have problems as well as those that deliver the exact order on time.
- Double Check Billing
Use your purchase order to double-check the prices on your invoice to compare changes in prices or quantity.
- Manage Order Quantities
By using a purchase order software for small business you’ll know what you have on hand and what you’ve already ordered. This will help to prevent overstock or duplicate orders.
- Keep Past Suppliers Within Reach
Want to reorder that one-off product that sold really well last season? Looking up the vendor with the help of purchase orders is a whole lot easier than searching through emails or trying to remember their details.
- ForecastÂ Expenses
Use historical purchase order information to forecast expenses for inventory throughout the next year. Then use current purchase orders to make sure you’re on track.
- Turn Employees IntoÂ Inventory Specialists
Generating, checking and routinely using purchase orders makes everyone more familiar with the process of inventory management. This empowers employees and makes them better able to handle questions, queries and problems.