Purchase Order Automation

Unleash the Power of Streamlining Purchase Order Acknowledgement with SourceDay

Purchase orders (POs) are the backbone of direct spend procurement. The efficiency of your organization hinges on a well-oiled purchase order acknowledgement process. Effective PO management ensures clear communication between buyers and suppliers, swift acknowledgement of PO changes, and the timely, accurate delivery of shipments.

However, many companies still rely on manual PO management methods. This involves sending PDF POs via email, hoping for email acknowledgements, and dealing with changes through email and spreadsheets. This outdated process is error-prone and inefficient, leading to missed acknowledgements, late shipments, and increased costs.

To address these issues, SourceDay offers a modern solution that streamlines the purchase order lifecycle. This article explores why purchase order acknowledgement is crucial and how the SourceDay solution improves acknowledgement rates and procurement efficiency.

The Purchase Order Lifecycle and Its Common Pitfalls

The PO lifecycle remains standard across industries, encompassing the following steps:

1. Create a Purchase Order

Purchase orders are generated from the buyer’s ERP system, specifying what they need from the supplier and when. POs can become complex, especially with multiple parts.

2. Supplier Acknowledges and Approves Issued PO

Suppliers confirm their ability to meet quantity, price, and delivery terms. Changes require back-and-forth via email, making it easy to lose track.

3. Manage and Negotiate Changes

Changes in pricing, quantities, and delivery dates are common and require email exchanges. During disruptions, change rates can rise significantly, leading to excess costs.

4. Shipment of Parts and Materials

Parts are shipped, and some organizations request Advanced Shipping Notices (ASNs) for visibility. Tracking ASNs via email and spreadsheets can be challenging.

5. Receipt of Parts and Materials

If all goes well, parts arrive on time and in full. This marks the start of invoice reconciliation and payment.

6. Paying Supplier Invoices

Invoices must match final PO terms and received parts. Spoiler alert: Manual reconciliation is time-consuming and error-prone!

Headaches of Manual Purchase Order Management

Managing POs manually using email and spreadsheets comes with several challenges, including:

  • Lack of Visibility: Manual processes hinder supply chain visibility, leading to missed acknowledgements, late shipments, and costly fees.
  • Data Fragmentation: Critical data is scattered across emails and spreadsheets, making it challenging to track and manage changes.
  • Increased Risk: Manual processes are prone to human errors, resulting in missed emails, overlooked changes, and costly consequences. 

Luckily, SourceDay provides relief from these particular headaches.

Stop the Manual Madness: The SourceDay Solution

SourceDay’s supplier collaboration platform addresses these manual challenges, improving PO acknowledgement rates and transforming procurement with:

1. Instant Purchase Order Acknowledgement

SourceDay ensures immediate supplier acknowledgement of POs. Any changes are easily managed with a few clicks and immediately visible in the shared dashboard.

2. Efficient Change Management

SourceDay’s digital supplier portal simplifies managing and negotiating changes to POs. All information is centralized, enhancing collaboration between buyers and suppliers.

3. Improved Shipment Visibility

SourceDay organizes ASNs historically, providing clarity on arrival dates. Buyers can track shipments in transit more effectively.

4. Streamlined Invoice Reconciliation

SourceDay automates the purchase order process, reducing manual effort in invoice reconciliation. This results in faster, error-free invoice processing and payment.

Real-World Success: Napoleon Products

We figured we could tell you how SourceDay´s purchase order acknowledgement solution can revolutionize your operations, or we could just show you real results from an actual SourceDay client success story!

Our client, Napoleon Products, faced challenges such as canceled orders, unhappy customers, and revenue loss due to communication issues with suppliers. After implementing our SourceDay solution, they achieved impressive results:

  • On-time deliveries increased by 35% in the first year.
  • Incorrect invoices dropped by 90%.
  • Increased profits and operational efficiency.

SourceDay even allowed Napoleon to thrive during massive disruptions, like the COVID-19 pandemic, by enabling tracking of POs at every step, eliminating missed acknowledgements and invoice discrepancies.

More Reasons to Embrace Automation

Automating the purchase order process offers several more significant benefits:

1. Enhanced Visibility and Tracking

Automated processes provide comprehensive visibility into PO status, acknowledgement rates, and recorded changes. This empowers teams to proactively track and monitor POs.

2. Efficient Supplier Scorecarding

Automation simplifies setting and measuring Key Performance Indicators (KPIs) for supplier performance. Common KPIs include quality, on-time delivery, responsiveness, and price variance. Automating scorecarding is essential for effective supplier management.

3. Precision and Customization

Automated purchase order management allows for precise tracking and customization. Teams can monitor and respond to changes in real time, eliminating missed acknowledgements and late shipments.

Don’t Wait to Reap the Benefits of Automated Purchase Order Acknowledgement

You have clearly seen how purchase order acknowledgement is a critical aspect of successful procurement and supply chain management. Manual processes are not only time-consuming but also error-prone, leading to inefficiencies and revenue loss. 

SourceDay’s supplier collaboration platform offers a modern approach to purchase order acknowledgement and management, thus improving acknowledgement rates and streamlining the entire PO lifecycle. 

So, why not reach out today, schedule a demo, and start making strides with SourceDay?