Having to purchase more inventory certainly isn’t a bad thing, it means you’re making sales. But it is a bit of a pain. Having to constantly make up and fill out purchase orders is a time-consuming part of inventory management, especially for wholesalers that purchase inventory from several different suppliers.
As TradeGecko rolls out new functions that streamline the way users purchase inventory, we take a look at the current issue with purchase orders, why they are important and how TradeGecko can make this part of stock management easier.
What are Purchase Orders?
First things first, what exactly is a purchase order? A purchase order is the contract between a buyer and seller that details the exact goods to be exchanged in a particular inventory purchase. It’s the document that details what merchandise is to be ordered and all the information surrounding that transaction.
SMEs carry out purchase orders all the time, usually without thinking and generally without calling them “purchase orders”. To most small businesses it’s just a part of doing business, ordering more stock. But if we look at the purchase order in isolation, separate from other administrative tasks, we see there are a few common features and trends in the way they’re completed.
Purchase orders are always documents, comprised of payment dates, delivery dates, inventory price and quantity. They include stock identification numbers, shipment details and other basic information SMEs must manually extract from their inventory management system. Even if they’re exported from stock management software purchase orders always require time for some information entry or checking.
Why are Purchase Orders important?
Purchase orders are a vital part of business and getting them right is integral to SME operations. The less time and money spent on incorrect inventory purchases is more time spent focusing on core business tasks.
Especially as SMEs grow or expand their lines of merchandise, getting the purchase orders right becomes increasingly important. The wrong quantity or time in a purchase order can mean a great deal of business down the drain. Manual purchase orders run the risk of human error and many SMEs have learnt the hard way when only a fraction of their stock turns up… a month late!
Purchase orders are also important in creating a business footprint. As a documentation of your purchase history they show where you’ve been, how you’re spending, where you’re succeeding and where you aren’t. They help you move forward and make informed decisions in future buying.
How can TradeGecko help with Purchase Orders?
The way TradeGecko helps with purchase orders is quite simple… it brings all the information together. As an inventory management system with a holistic and integrated approach to monitoring stock levels, TradeGecko makes creating and managing purchase orders super simple. You can quickly see all the outstanding purchase orders and bringing goods into stock is as easy as clicking the received button.
SMEs get back a great deal of their time and minimise the risk of human error as TradeGecko customizes the purchase order for the specific business using it. Pre-loaded suppliers are available for selection, current stock levels are outlined and prices are adjusted to different quantities. The simple and professional template allows users to easily navigate or modify the purchase order with all their inventory information right there in front of them.