Automate Purchase Order Processing with AI
According to a study by Supply Chain Brain, 80% of the classic old processes in procurement can be eliminated with the help of automation.
You can skip paper storage, Excel tracking, and other purchase order procedures.
Processing orders by hand takes a lot of time and is prone to mistakes, which can lead to paper loss, duplicate orders, and slow approvals.
Purchase order automation reduces the time and labor required to fix these issues.
Steps to Automate Purchase Orders
This is how to start the automation of purchase orders:
1. Integrate Automated data capture
Software like Graip.ai will help you capture data from invoices. A simplified form of information from previous orders will help your accounts team quickly generate the upcoming pay orders.
2. Financial System Integration
Map your integrated ERP and/or accounting system to make sure you have all the data you need.
Your ERP software will make it easy for your team to create a requisition, send it to the people who need to approve it, turn it into a PO, and email it to your preferred supplier.
3. Define Policy Approval Workflows
In addition to mapping fields from connected systems, you'll need to define your purchase order policy and set up the approval process so that requisitions can be quickly turned into workflows.
Departments and monetary criteria may require distinct approval methods. Automate purchase orders after you have the necessary data and approval flows.
A cloud-based tool like Graip.ai makes this easier and faster.
Purchase order automation offers:
Buyer-seller purchase orders are legally binding. They must list products, quantities, and prices. They monitor departmental budgets, cash flow, and purchases internally.
PO errors require vendor-buyer communication to be corrected. This wastes money, ties up funds with wrong orders, and slows production.
Automated systems like Graip.ai can filter documents if the information doesn't match, like when supplier codes or names are missing.
They can also automate approval workflows to make sure the right permissions have been granted. All of these things get rid of human error.
In an automated purchase order system, team members can set the rights of users for approval routing, supplier data entry (uploading contracts, cataloging products and services, setting payment terms, etc.), and more. Setup simplifies procurement.
Change in budgets
They can also decide who approves requisitions. An audit trail records this for evaluation.
For example, you can make a rule that any purchase under $50 is automatically accepted. You can choose approvers for each department, and when there is a requisition to approve, automatic alerts will be sent to them.
This is useful for purchases that cost more. After approval, the seller receives a PO via email.
Department spending can be more visible through automation. This visibility enables you to obtain better terms with your present vendors and helps you figure out if you should discover new vendors to work with.
Measure supplier performance and supply chain performance. With purchase order software, you can search through all system documents and check the status of an order, an invoice, or a payment at any time. This gives you a full view of your procurement process.
With automation software, you can set up the system to meet your needs, no matter what they are. It makes it possible to limit purchases to a certain amount of money, a certain supplier, or a certain item.
Purchase order automation software automates firm purchasing policies and internal controls. Policies like the approval matrix, lists of approved suppliers, and audit trails that must be followed are built into the system so that compliance is automatic and can't be broken.
No one can buy without authorization or from a non-preferred provider. Even so, an audit trail records everything for compliance audits.
Purchase order automation benefits Your business's automation of purchase orders has a lot of benefits, such as increased efficiency, better compliance with corporate policies and contract terms, better visibility into how much a company spends, and more.
You can find strategic cost reduction opportunities and a competitive edge by using the platform to study your shopping trends.
Purchase order automation can help your firm grow by tracking company spending.