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INDUSTRY INSIGHTS

  • 16 Apr

Purchase Order Management: Know What’s Where, When

What is a Purchase Order Management System?

Installing and running an efficient, streamlined and dynamic process is undoubtedly the aim of any forward thinking retailer. A Purchase Order Management system should play a prominent role, facilitating accurate knowledge of what has been ordered, when it will be delivered and what needs to be re-ordered in a manner that is as easy as possible.  

Accurate and transparent costs

The biggest advantage of using a Purchase Order Management system is its financial impact. Expenses and costs can be better understood and therefore budgets managed confidently. Using the ability to auto calculate freight and duty (landed costs) means that full accuracy and transparency can be provided at the first stage.

The capability to break down financial costings at the beginning of the purchase process rather than the end means that stock orders can be run based solely on whether they are financial profitable. This can also improve control over relationships with suppliers.

More efficient deliveries

Due to the fact that Merret‘s Purchase Order Management system has the ability to create flexible purchase orders, any incomplete deliveries that may be received are dealt with without needing manual input. Purchase orders can also be re-raised, and the system will allow receipt of additional deliveries.

Multi-drop purchase orders are also possible, which means that forming large commitment agreements with suppliers can be achieved, bringing in many benefits. As the stock can be phased in to suit requirements, significant financial savings can be made by using this approach to purchasing.

Safeguards

Installing safeguards are part of a Purchase Order Management system, and can be customisable to allow for full flexibility. Removing financial commitment after a stated period is possible, as is keeping track of various outstanding balances; this prevents financial processes getting out of hand and maintains a better level of financial control.

In another example, issues such as stock shortages in certain geographical locations or seasonal demand can be factored into the ordering process, and safeguarded against by a system that allows for buyers to build up product ranges in a structured manner.

Enhanced knowledge of stock and suppliers

Being aware and having detailed knowledge of any financial commitment on inventory can be achieved through a Purchase Order Management system.  Clear visibility can be provided on the present state of stock levels, reorder levels, available stock, and stock that is being held, meaning that shortages can be foreseen and prevented. Cost prices can also be viewed alongside sales prices, resulting in greater awareness of profit margins. 

 

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