As a growing business you face a growing number of new challenges; staying on top of staffing, new products, suppliers and accounts can become a real struggle. Having a well established purchase order system can really make a difference, taking some of the strain from your manual processes and letting you get on with the bits that you love.
So what does this look like in practice? And why should you go to the effort of adopting a purchase order system?
1. It’s all on record.
Fundamental to the everyday running of any retailers business, purchase orders act as a contract between a buyer and a seller. Communication with your suppliers is crucial for your business, and as it grows this process becomes increasingly complicated.
If there is an issue down the line between you and your supplier then with quick reference to the relevant purchase order the problem can be ironed out. Likewise, if there are any issues with delivery and shipment, it’s under control because it’s all on record.
An efficient purchase order system ensures a more efficient and professional process, and can save you real time and money. For more on this, check out the white paper “13 reasons every retailer should use purchase orders” now.
2. Avoid over-buying.
Another great reason for properly managing your purchase orders is the benefit which it brings to your buying habits. Easily being able to see what is and what isn’t on order, as well as having a clear idea of the consistency of pricing and quality of your main suppliers, means you will never over-buy again.
3. Intelligent profit and loss.
Critical to the running of a growing business is an understanding of what is and isn’t working. Failing to keep an eye on the ins and outs can be daunting, and even the word accounting can scare off those without basic training.
With a well managed purchase order system profit and loss reporting become considerably easier, so you can see in real time how your business is performing. This is an invaluable (and easy-to-use) tool, especially for growing businesses with a tendency towards vanity metrics.
Save your company real time and money on your costly accounting process by producing a clear system for purchase orders.
Now that you have a basic understanding of the how critical they purchase orders are for the smooth running of a growing business, check out our free white paper “13 reasons every retailer should use purchase orders” to find out more, and to gain some real insight into the power of purchase orders.