Often times, request for quote (RFQ) or purchase order (PO) intake requires manufacturers and distributors to manually generate, track, process and manage massive amounts of data.
Manual processing may include the sorting and validating of thousands of lines of global purchasing data, which can results in human-error and reduced delivery time. Inefficient methods make it difficult to manage inventory, and can impact the bottom line of your organization.
43% of financial managers recognized that their organization’s formal purchase order system has “major inadequacies.”
What is a Purchase Order Management System?
A purchase order management system is software that automates the order lifecycle and provides businesses with vital technology to manage POs and buyer-supplier partnerships. This software is disrupting the way electronic manufacturing companies manage, fulfill, and track purchase orders.
By eliminating manual data entry and tracking data fluctuation, purchase order management systems enable manufacturers, and distributors to move quickly and accurately.
What To Look For In A Purchase Order Management System:
1) Ease of Implementation
This technology is supposed to simplify things at your organization, so the platform should be easy to implement. Make sure the software is not only easy to roll out on computers company-wide but user-friendly so you can quickly train your employees and reduce downtime.
If your organization utilizes any existing systems or processes to organize data (API, EPI, or Excel) integration capabilities should be a top priority. The software should allow for seamless integration with your existing systems and spreadsheets so you can store your information on a universal platform.
3) Secure Data Transfer
Your purchase order management system should provide a secure platform to transfer and store highly sensitive data during the PO lifecycle. Protect your data from any security breaches and gain peace of mind.
4) Real-Time Data Analytics
Data analytics are constantly improving the electronic component supply chain. When evaluating a purchase order management system, make sure to verify that the software facilitates the real-time data insights and analytics your organization needs. This data can enable your company to improve its productivity and empowers employees to make strategic pricing decisions and accurately estimate the time to respond to POs.