Invoice purchase order software (I/PO software) refers to technology that syncs purchase orders created by buyers and invoices generated from fulfilled purchase orders.
It’s a pragmatic solution that has simplified life for procurement teams and vendors.
In case you’re still on the fence about investing in invoice purchase order software read on to learn about our top three invoice purchase order software tips. But before we go there, here’s how this procurement solution can assist you.
How Can Invoice Purchase Order Software Help You
Invoice purchase order software is a contributing factor in the smooth operation of the procurement process. It provides several benefits including decreasing the number of bottlenecks during requisitioning, mitigates operational expense, and provides a consolidated communication platform.
1. Fewer Bottlenecks
Prior to issuing a purchase order to a vendor, the person making a requisition on the buyer side must get approval of their requisition. This can mean a tedious back and forth between relevant heads until the green light is given.
At times requisitions get stuck in the complex bureaucratic web of enterprises. Thankfully, I/PO software makes it possible for all involved to see what needs approval in a time-efficient manner.
2. Reduced Operational Expense
‘Time is money’ is a common business dictum we’ve all heard one too many times. In procurement, it is perhaps truer than in other industries and is one of the reasons procurement teams are always seeking ways to keep spend down via strategic spend management.
By using invoice purchase order software, operating expenses (OPEX) are kept to a minimum as teams are able to use time more efficiently by automating the purchase order and invoice generating processes.
3. Consolidated Communication Channels
Nothing frustrates procurement teams and their vendors than communication challenges.
In fact, in a survey of 400 companies employing 100,000 or more employees, the cost of poor internal communication within enterprises came to a staggering $37 billion per year or $62.4 million per company.
For companies with an average of 100 employees, the cost hovered around $420,000 per year. And this is excluding poor communication with external business partners!
Invoice purchase order software provides vendors and buyers with a centralized consolidated communication channel which helps to improve communication and lessens the likelihood of lost purchase orders and delayed invoices.
Now that we know how beneficial invoice purchase order software is, let’s dive right into the tips you absolutely must know regarding this software.
Tip #1 Talk to Your Team and Vendors Before Implementing I/PO Software
The very first tip about invoice purchase order software is to not keep it a secret from your team members and vendors.
If you want the best outcome, you’ll need their active input and buy-in. Surprising them with a new technology that they have to learn is not going to be fun for anyone involved no matter how short the learning curve.
Start a dialogue with your procurement team and vendors about strategic ways you can improve the purchase order and invoicing processes. Allowing an open conversation before pushing the idea of automation makes everyone feel included.
It will also encourage honest discussion on the efficacy and efficiency of the software once it becomes the new modus operandus for issuing purchase orders and receiving invoices from sellers.
Tip #2 Opt for High Functionality and Minimum Frills
What is high-functioning invoice purchase order software? Basically, this is I/PO software that gets the job done with minimum effort. In other words, you’re looking for software with inbuilt templates and that can import your contacts so you can send the purchase orders to your vendors from within the software.
It’s also a good idea to stay away from I/PO software that is complex, has a steep learning curve, and doesn’t integrate seamlessly into your existing procurement suite.
Anything that aggravates team members and has the potential to waste time should be avoided.
Tip #3 Ask for a Demo Before Signing Up for a Full Service
A lot of companies are not aware of the fact that they can ask to sign up for demo accounts to see how the software works before making a full-on investment and commitment.
There is no one-size-fits-all I/PO software. The software that is ideal for your company’s needs may be different from that which is perfect for another enterprise.
The key is to test and try out a few I/PO software options before you settle on one. Ask questions and make sure you understand everything and your content before introducing the software to your team and vendors.
Getting the best returns from your invoice purchase order software takes time, repeated evaluation, and refining invoicing/purchase order techniques.
We’ve seen how invoice purchase order software can provide sourcing and vendor teams with ready access to templates that allow them to easily generate purchase orders and invoices, send invoices/purchase orders to the relevant party, and keep these documents in a centralized repository.
Not only is invoice purchase order software a key component of the procurement process but it’s very cost-effective, and integrates seamlessly into most procurement solutions.
If you are searching for reliable and efficient procurement solutions don’t look further than ProcurePort.
ProcurePort prides itself on being one of the leading providers of the best procurement software on the market and is trusted by enterprises and organizations such as UNOPS, HUD.GOV, and conEdison.
If you would like to discuss procurement software with a consultant or to schedule a demo of our solutions contact us today.