Purchasing and its effective usage are vital to any successful business. In a regular scenario, retailers send purchase orders to vendors to maintain stock and meet requirements of their customers. The success of your retail business entirely depends on how streamlined your purchasing process is, and how well you manage your purchase orders.
Why are purchase orders so Important to your business?
Conventionally, retailers maintain paper records to inform vendors about their requirements. Many retail organizations forego purchase orders because they perceive that paperwork slows things down, or simply because they already have a working relationship with vendors.
Small start-ups tend to have an organic purchasing process. Over time, however, the process changes as they develop relationships with their vendors. Once a company grows, and the purchasing demands become more specific, urgent and communication challenges arise if purchase orders are not used or certain details are not correct in the order.
So, purchase orders provide concrete details for the vendors as well as a concrete paper trail that can be used as a point of reference for when things go wrong.
Why are paper-based procedures inefficient?
If your business is currently using ordering slips or other paper records, you are more likely creating excessive documents. Most retail businesses process thirty to fifty orders during a purchasing cycle, which includes requisitions, purchase orders, quotations, order acknowledgments, advice notes, goods received notes, packing slips, and invoices. So, there will a lot of documents to keep track of a single purchasing.
Good record keeping is essential for effective purchasing and procurement, but following are some challenges that you might face in keeping records-
- Paperwork can easily be lost, damaged or destroyed
- it’s often hard to detect duplicate requests or missed orders
- It requires an efficient and regularly updated filing system which consumes space and man-hours in order to work effectively
So, how can retailers toss their paper-based purchase orders and finally streamline their purchasing process?
In the retail business, Purchasing and inventory management go hand in hand. Every time, a retailer stocks an item from a vendor, purchase order records allows them to track of purchasing requests, outstanding orders, and manage your account payable and receivable. To prevent any errors from occurring, it is best to manage both your inventory levels and purchase orders in the same solution.
When you manage your purchase orders and inventory level separately, there is more room for discrepancies in purchasing, lack of visibility and overall inefficiencies. Furthermore, a retail business, on an average, has thousands of products and hundreds of vendors involved in its purchasing cycle, which add more complexity to the current process.
How Can Purchasing Manager Help?
With Purchasing Manager app, you can easily create orders, track purchase history, and share your orders with different vendors with a few taps.
Easily create your order list
- Well-categorized product list to record any order
- Add, edit or update any order list
Manage your vendors
- Add all your vendors’ contact details
- Edit and update vendor details easily
Share Your Purchase Orders with Vendors
- Map products with different vendors
- Share order lists with one or multiple vendors
Track Order History
- Check your last order list shared with your vendors
- Update status of your current order list based on activity
- Add note for future reference
Purchasing plays a crucial role in helping businesses satisfy customers’ needs faster. Download Purchasing Manager app today and streamline your purchasing process.