Are you placing your purchase orders on the phone?
Then, you may receive the incorrect products or quantities, which delays your production process and further deliveries to your customers. If you want to implement a system that can help you prevent production delays, continue reading this blog.
Water Delivery Solutions offers ERP for bottled water businesses to streamline and optimize their entire business operations. The system allows you to place purchase orders, improving order accuracy.
This blog explains how ERP features can help you improve purchase order accuracy.
What is a purchase order?
A purchase order is also abbreviated as a PO. It is an official document from a buyer committed to paying a seller for the specified products to be delivered in the future. The document contains the type, quantity, and price of the goods. Once the seller accepts the purchase order, it acts as a contractual agreement. Accurate purchase orders allow businesses to maintain control over their investments.
In this case, a bottled water business issues a purchase order to third-party vendors to obtain raw materials such as caps, empty bottles, and labels. The POs can be raised for multiple vendors or a single vendor, and their management requires accuracy and precision to ensure optimal procurement.
Contents of a purchase order
The information contained in a purchase order provides clear and explicit details about the transaction. The key elements included in a purchase order are:
- Purchase order number
- Names and Addresses of buying and selling parties
- Detailed description of ordered items
- Quantities
- Unit prices
- Total cost
- Delivery date
- Payment terms
Accuracy in a purchase order plays a vital role in reconciling invoices received with goods ordered and delivered, preventing payment errors and disputes.
Importance of accurate purchase orders in bottled water businesses
Purchase orders are legally binding documents that aim to protect buyers and sellers. Inaccurate purchase orders can lead to financial risks, delays, and damaged supplier relationships. Reasons why you need purchase order accuracy:
Legal protection and contractual agreements
Purchase orders are legally binding documents between you (a bottled water business) and your raw material vendor (supplier) that outline transaction terms. This document includes a record of ordered items, their prices, and the date. These pieces of information are crucial for issue resolution.
Budget management and control
Accurate purchase orders ensure that all the purchases are authorized and documented, helping you stay within your budgets. The purchase order enables you to track and manage spending, avoiding overspending and unauthorized purchases.
Inventory management and efficiency
Purchase orders are crucial for tracking bottled water inventory, managing the supply chain, and ensuring timely deliveries of bottled water.
Ways Water Delivery Solutions improve purchase order accuracy
ERP for bottled water offers the purchase module to manage, track, and monitor your business’s purchase orders. It automates purchase orders and centralizes data, streamlining replenishment, minimizing data entry, reducing the risk of errors, delays, and miscommunication. Ways bottled water ERP helps you improve purchase orders are:
Automation
The ERP system reduces manual data entry and automates processes, including generating purchase orders, assigning tracking numbers, recording purchase history, and coordinating with suppliers. This automation reduces manual errors and ensures that your data remains accurate throughout the supply chain.
Streamlined processes
Water Delivery Solutions’ ERP can break the complex procurement process into smaller, manageable processes, ensuring accuracy and efficiency. You can manage specific line items in purchase orders, multiple dates, and better communication with suppliers.
Centralized data
All your purchase order data, irrespective of vendors, is stored in a centralized database, making it a single source of truth. Keeping all your purchase data in a single database can help you reduce data silos and enhance visibility into the procurement activities. Real-time purchase order tracking with accurate and up-to-date data enables you to make better decisions and reduces data errors.
Real-time visibility
An ERP system enables you to track purchase order statuses, including inventory levels, supplier performance, and order statuses in real-time. This empowers you to track orders, manage stock levels, and forecast demand based on historical data. Gaining 360-degree visibility into your purchase orders helps businesses make more informed purchasing decisions.
Improved communication
ERP systems enhance collaboration between different business departments, such as finance, manufacturing, and the warehouse, with suppliers. This fosters transparent communication, preventing misunderstandings, delays, and errors in purchases.
Efficient inventory management
The bottled water ERP enables you to track stock levels, reorders, and reordering points in real-time, ensuring sufficient stock levels, enhancing your inventory management, and preventing stockouts and overstocking, which can result in inaccurate purchase ordering.
Reduced manual errors
Automating purchase tasks, centralizing data, and enhancing communication are essential to ensure accurate procurement of raw materials. This reduces data discrepancies, returns, and delays, ultimately improving overall business efficiency and cost savings.
Benefits of Water Delivery Solutions to improve purchase order accuracy
Water Delivery Solutions’ ERP streamlines your raw material procurement process, enhances operational efficiency, and improves data accuracy and visibility. Implementing such an ERP for bottled water businesses can facilitate better supplier management and help control costs. The major benefits of ERP for purchase order management are:
Workflow optimization
Automating the purchase process, including purchase order creation, vendor selection, order placement, and invoice processing, reduces manual effort and speeds up the procurement cycle, optimizing its operation. Setting up the threshold stock levels can automate the reordering process. You do not have to manually place a purchase order, which also removes the chances of manual errors, ensuring accurate procurement.
The system stores all data in a single database, enabling you to track purchase activities, ensure data consistency, and transparency across your business departments.
Better supplier management
The Enterprise Resource Planning system helps manage and track suppliers’ or vendors’ information, communication, and performance, establishing and maintaining stronger relationships. You can monitor and evaluate supplier quotes and performance, supporting the selection of the right supplier. It also provides data and insights to come to better negotiation terms and pricing with suppliers.
Reduced processing time
Automation and streamlining purchase tasks reduce the time and cost associated with purchasing activities. Accurate inventory tracking and demand forecasting minimize the chances of overstocking, reducing storage and bottled water spoilage costs. Real-time data and insights enable businesses to negotiate better prices and terms with suppliers, optimizing costs. Automating the purchase process ensures fewer errors in the order processing and bill management, leading to cost savings.
Improve compliance
The purchase module can be configured to enforce company policies and procedures, ensuring compliance and adhering to the internal guidelines. We can help you configure the purchase module of an ERP for bottled water businesses. The system provides audit trails of all purchase transactions, facilitating audits and ensuring accountability.
See How We Can Help You Drive Massive Amounts of Profit
- Customer App – automate online ordering for customers
- Driver App – optimize delivery routes for faster deliveries
- Sales & Analytics – know you business in details
Bottom-line
Purchase orders or POs are crucial aspects in any business and require accuracy to ensure the right procurement. Having sufficient and accurate raw material enables timely bottled water production and deliveries, improving customer satisfaction.
Water Delivery Solutions offers an ERP for bottled water businesses to manage and track end-to-end operations, providing complete visibility and traceability of the products.
He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.
