How efficient purchase order management improves wholesale operations

Purchase order management is vital to gain a competitive edge in ERP and wholesale so an EPOS suite system would help streamline operations.

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Why is purchase management needed?

Purchase order management is the process of ensuring all orders progress from placement to delivery. In wholesale, a streamlined purchase management process means an increased likelihood of achieving revenue targets, minimising costs, and benefiting from economies of scale.

For a seamless purchase order process, however, you need a, like a wholesale EPOS system, that aids in monitoring and analysing orders and payments. With purchase information, wholesale owners and managers can effectively make quick decisions to improve operations.

How does a purchase management system assist the wholesale industry?

The wholesale industry is filled with immense competitive pressures and economic volatility. Wholesale businesses must, therefore, find a way to stay ahead of the curve because they are likely intermediaries of the supply process. A purchase management system streamlines operations and alleviates the burden of monotonous and error-prone tasks on wholesale employees.

Purchase management systems allow:

Upscaled orders

Using a purchase management system allows wholesale businesses to take up large orders, with a lower risk of errors, forgetfulness, or unnecessary reorders. This leads to economies of scale which in turn leads to lower purchasing costs. This improves the overall competitive edge of the wholesale business and builds a connection with customers.

Better time management

Throughout the supply chain, an immense amount of time is saved as all monotonous tasks are converted into automated tasks through a purchase management system, which reduces the time required to correct errors and revert orders. This type of system allows wholesale managers to track and control stock, which results in better time management.

Good-quality service

With centralised processes and easy navigation of operations, good-quality service is encouraged. A purchase management system can keep track of when a purchase was made, from which branch of a wholesale chain the purchase was made, and how many items were purchased. Other details about customers can be entered too for better decision-making.

Lowered costs

With purchase management, costs are significantly lowered as information obtained is data relevant to behaviour, business patterns, and sales. Therefore, there’s no need to conduct research and make decisions with regard to purchases and inventory management, allowing wholesale businesses to stick to proposed budgets and forecast cash flow.

Steps involved in the purchasing process

The purchasing process is rather seamless with a purchase management system and is made up of 4 stages:

Laying the groundwork

This is the first step in the purchasing process and deals with analysing consumer information, such as demand and types of products witnessing speedy sales, how many items are left in stock, and which products are at the end of their shelf life.

Coordinating with departments

Once the collation and data collection procedures are over, it is best to run through the order with other departments for financial release and budgeting. The integration and centralisation capabilities of a purchase management system help here.

Releasing and dispatching items

Once the purchase order has been approved, it is sent to suppliers and negotiated. Once it has been accepted, it is delivered to the warehouse and undergoes a quality-checking process. This way, the balance between buying and selling is improved.

Tracking and accounting

Once the goods have been quality-checked, the tracking and accounting processes can begin, where cash flow is forecasted, budgets are made, and consumer preferences are highlighted. This ensures that all stakeholders are on the same page.

Once the goods have been quality-checked. The tracking and accounting processes can begin, where cash flow is forecasted, budgets are made, and consumer preferences are highlighted. This ensures that all stakeholders are on the same page.

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FAQs

Why is inventory management important for wholesalers?

Inventory management is the centralised base and it allows the system to acquire, store, sell, and then deliver wholesale items, taking care of the majority of processes. Inventory management can be used to lower operating costs, predict demand for items, manage inventory, and track competition.

What are the risks of a purchase order management system?

Security risks, employees’ hesitancy to adopt such a system, data loss, and data breaches are some risks of such a system. These risks can be mitigated by implementing the right training practices and installing the most reliable system, whilst also getting a system that fits the needs of your wholesale business.

Choosing a purchase order management system

Choosing the right purchase management system relies on factors such as the main consumer demographic, competition in the market, financial capacity, and the ability of staff to adapt. When all these factors are kept in mind, it is easy to strategise and make decisions to improve the operations of a wholesale business.