5 steps to find the best Purchase Order (PO) system

Business Purchase order Software Uncategorized
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5 steps to find the best purchase order (PO) system for your business

 

There can be huge benefits of implementing a purchase order system in your business. However, finding the right one can be critical to ensure a good implementation and ensure you get the values you expect from the system.

In this guide we will provide you with some useful information regarding how to ensure a good process when looking for a new purchase order (PO) system.

 

What is a purchase order system?

A purchase order system is an automated way of handling purchase orders in your organization. It can include processes such as purchase planning, purchase requests, purchase orders, goods receipt and supplier invoice automation (Accounts Payables) and more.

 

What values can you expect from a purchase order system?

Some of the key values you can expect from a purchase order system are

  • A digital approval processes
  • Real-time cost control
  • Electronic goods receipt process
  • Invoice automation
  • Save and secure storage and access

 

So how do you find the best alternative for you?

 

1. Start with the goal

What is the problem you look to solve and what are they key values you expect from the system.

Examples might include

  • Ensure clear agreements with your suppliers (to avoid miscommunication)
  • A more efficient approval process
  • Increased budget control
  • A more efficient Accounts Payables (AP) process
  • Improved cash flow forecasting

 

Listing your criteria’s will make it much easier for you to evaluate and find the right solution for your company.

 

 

2. Understand who it’s made for

Different systems are often created with different target groups in mind. While some are designed for large companies’ others are created for smaller companies.

The same goes for industries, a system designed for one industry might have very different functionality than another. For example, for project-based companies managing budgets and cashflow might be essential, while for others purchasing using electronic catalogues might be important.

Often the target industries are presented in a separate section on the home page for the company, using this will ensure that both current and future features are tailored to meet the requirements of your industry.

 

 

3. Workflow scope

While some purchase order solutions limit their scope to purchasing, other also include full Accounts Payable automation. Ensure that you understand the capabilities of the software you are evaluating so that you can be certain your goals can be met.

I CostTracker you can choose if you wish to limit your scope to purchasing or if you like to enable our automated invoice (AP) solution with machine learning capabilities.

 

 

4. Integrated vs stand-alone

So, what does this mean:

Stand-alone means that you will be using the software as a separate software without integrating with your accounting software.

Integrated means that you will be integrating either directly or file-based with your accounting system. In this way you typically synchronize important master data from your accounting system and post transactions between the systems.

Most systems come with pre-built integrations that you can easily enable. For you it is important to ensure your that your accounting software is available.

 

 

5. Try it out!

A great thing is that you can often try it out in a free trial period. This allows you to become familiar the product and invite other users in your organization to ensure that implementing the software becomes a success in your company.

We hope you find this useful in your search for a new purchase order system.

 

Please also see:

10 important values you can get with CostTracker

 

CostTracker is an easy-to-use, cloud-based purchase order system designed for small to medium-sized companies. CostTracker provides cost control in your projects and general business for hundreds of businesses worldwide. CostTracker can be integrated with most accounting systems and you can easily try it out.

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