Purchase Order Automation and Its Impact on Supplier Relationships

Purchase Order Automation and Its Impact on Supplier Relationships

SourceDay

We’ve previously discussed six important benefits of purchase order automation. Those with automated purchase order systems can expect improved efficiency, better document management, fewer errors, speedier delivery times, streamlined inventory management, and enhanced decision-making capabilities. All of these things have a direct and positive impact on supplier relationships. Positive relationships with suppliers is critical to a smoothly running and profitable production cycle.

Here are four ways automated purchase orders strengthen supplier relationships:

1. Long-term Partnerships

Automation allows for the mapping and easy navigation of supplier contracts far in advance. Automated purchase orders can be tracked and programmed for an extended time, allowing for better negotiations and more stable collaborations. With a long-term plan in motion, organizations may negotiate stable (and reasonable) pricing.

2. Reliability

Reduction in human errors means stronger trust between the organization and the supplier. Reliability means all parties are more willing to plan ahead. Automated technology means they are more able to plan ahead. With uninterrupted lead times, the process is fluid from start to finish. Goods and payments arrive on schedule. The relationship is mutually beneficial.

3. Improved Communication

With a long-term and stable relationship in place, an automated system facilitates better communication. Automated notices may be programmed far enough in advance that changes, needs, and reminders are triggered promptly. Nothing is “forgotten” or lost in the paper shuffle until the last minute.

4. Responsible Ends

Despite the best intentions and best efforts, sometimes a supplier simply isn’t meeting demands. With a clearly documented track record, including efforts to support and remediate, an organization may need to end the relationship. Having an automated system with accessible files, the organization may produce documents that support the termination and then end the relationship responsibly.

We understand the importance of strong relationships with suppliers. Automated purchase ordering is an important tool for building and maintaining those relationships. For more information about how we can help, contact us.