Business owners, who sell products online, have to deal with offline suppliers to meet their customer’s needs. However, with the rush of orders ensuring a smooth supply chain management is one of the major challenges for many.
For those who have overlooked the importance of keeping a tap of every business transactions can automatically lead to complications and longer delays in fulfilling your customer’s demands.
And, frequently not being able to fulfill your customer’s orders in time can hamper growth opportunities that come your way.
Role of purchase order
A purchase order acts as a key element to streamline major inventory processes, as well as, make the best optimization of costs.
Are you maintaining a purchase order for every transaction you make with your suppliers? Not being able to do may stop you from exploring new opportunities that can help you boost performance in every stage of a purchase order, from request to receipt and make it less labor-intensive.
How can a purchase order help e-Commerce owners grow?
Benefit One: Accurate inventory stocking and forecast
Coping up to manage with accurate stock levels for your business, I’m sure is a struggling task and like many other sellers if you are looking to make the best optimization out of resources- a purchase order can help you.
Streamlines inventory management flow
Making it a point to maintain purchase orders will give you an idea about the usage of your products. Every purchase order will have a purchase date, which in turn, can help you figure out how long does it take for each product category to get out of the warehouse.
Having an ability to understand this metric will automatically save you from overstocking or understocking scenarios for your selling business. Adopting an Purchase management software will allow you create purchase orders in real-time making it easy and transparent to deal with stock requirements for your online selling business.
Benefit Two: Access to supplier transaction history
You may have integrated with the best shipping services to ensure a speedy delivery, but, if your supplier is unable to offer you products in time will automatically delay your customer’s order fulfillment process. However, encouraging purchase orders for every transaction with your suppliers will boost inventory management.
Purchase orders from each of suppliers will make it easy to understand the time they take to deliver you products. With every purchase order, you can analyze which suppliers are offering the quickest service to ensure in-time procurement of products; especially during rush days.
Benefit Three: Simplify internal communications
Running a selling business means you’ll have to ensure your warehouse employees have the same information to avoid confusions and delay in procuring products from suppliers. Adopting purchase order method for your transactions will help you avoid delays or even missing out on orders.
Single access to transaction details
Purchase orders generated for every business transaction can help you eliminate the hassle of individually sharing details to each employee. Having centralized purchase order management software will be an added advantage as it will allow you consolidate all your purchase details at one place making it easy for you and your staff to access information at one’s own convenience.
Benefit Four: Seasonal stocking accuracy
If you are a seasonal online seller, or, sell seasonal products- it is important to ensure you are able to sufficiently stock products during those rush days. Unable to meet your customer’s needs in time, may make them feel you are not seasonal specialist and jump to one of your competitors for making purchases.
Ensure accurate product availability
Purchase orders give the ability to track demand of customer’s needs during those busy days, hence, you can easily forecast stock requirements to make the most out of your seasonal product selling business.
Benefit Five: Data management capabilities
Data is the key to winning decisions; therefore, ensuring a record of every transaction you make will help you enhance decision-making capabilities for your online selling business. Having a system to preserve purchase order history transaction will help you avoid costly mistakes too.
Easy access to information
A purchase order will have every detail that includes order details (products, price, quantity), supplier information (name and shipping details), as well as, other important information to the purchase. Therefore, instead of digging in multiple files and excel sheets, a purchase order will help you secure purchase history transactions in a much-organized way.
Many business owners who unwisely forego purchase orders, just because of the hassle of maintaining paperwork- automation can eliminate such manual effort allowing you to create and manage your purchase orders in real-time.
Savio Fernandes is a writer who influences. Writing for over three years at Orderhive, he is currently focused in offering eCommerce and retail solutions for start-ups and medium business owners.
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