Benefits of an Electronic Purchase Order System

Many businesses are shifting from paper-based POs to electronic ones for a good reason. It is a resourceful tool for businesses to save time and money through utilizing modern-day technology. 

In this article, we’ll explore everything related to electronic PO systems, starting from benefits and ending with software recommendations. So, if you are ready, let’s start! 

What is an Electronic Purchase Order? 

An electronic purchase order is the digitized version of a regular paper-based one. It is a document containing purchasing terms and conditions. At the same time, an Electronic Purchase Order System is a system set in place to manage companies' purchases digitally. It is a reliable system that helps track company purchases and manage expenses better. 

Paper Based PO Vs. Electronic PO

When it comes to purchase order systems, they can be in both physical and electronic formats. 

Paper-based purchase order systems are more prone to errors as the system consists of manual processes. This can cause various inefficiencies in the overall process and result in more significant issues. For instance, more significant errors can hurt buyer-supplier relationships. 

One of the main drawbacks of a paper-based purchase order system is that responsible teams spend most of their time regulating daunting processes that can be easily automated. So, paper-based systems are not only unreliable but also inefficient when it comes to time management and resource management within teams. 

With all the mentioned risks associated with paper-based systems, it is safe to assume that this system is not timely. 

Electronic PO systems simply eliminate all the drawbacks and risks associated with paper alternatives. Electronic PO systems enhance accuracy and consistency during every stage with robust automation. 

Electronic PO systems are more reliable as they make the whole purchasing process more transparent. Every stage of the process can be easily tracked and documented. Moreover, electronic systems allow you to create approval workflows to manage purchasing even better. 

All the advantages and risk mitigation factors that come in handy with electronic PO systems are great for fostering positive buyer-supplier relationships in the long run. 

So, when it comes to choosing between paper-based and electronic PO systems, electronic is the right way to go. It will enhance transparency, reduce errors, and foster supplier relationships.

Benefits of Electronic Purchase Order System 

Finally, let’s overview the key benefits of electronic purchase order systems. 

Cost Control 

The Electronic Purchase Order System allows for better cost control, which, in the long run, contributes to reducing expenses. These systems come in handy with potent tracking and analytics tools. When you get an overview of your spending, it is easier to identify areas to cut off. 

Besides, electronic PO systems allow automation and approval workflows to be set, which allows for greater control and elimination of unexpected expenses. Everything from workflow automation to transparent processes allows you to control expenses and set the optimal timing of the purchase to match cash flow. 

Purchasing Workflow Automation 

Electronic PO Systems usually offer powerful P2P workflow automation. These workflows allow you to get: 

• Protection from unnecessary spending and safeguards against unauthorized purchases 
• Customized workflows to fit your business needs better 
• Assign and manage user roles and approvals on the set of documents ranging from purchases to invoices. 

Essentially, workflow automation will save you time and money. So, this is yet another key benefit of electronic PO systems. 

High Accuracy and Less Errors 

One more benefit that the electronic PO system gives users is higher accuracy levels, which leads to fewer errors. Due to the automation of lots of processes and overall digitization, there is less chance of making a mistake. 

Reduced Expenses 

Electronic PO Systems allow costs to be reduced via automation. How it happens? First of all, there is no need for the team members to create and send the requisition for approval manually. 

It also eliminates the time managers spend reviewing the requisitions and requesting changes. Even more, time is required to get the requisition data and turn it into a purchase order after it has been approved. Finally, you need time and resources to send the form over to the vendor. 

Well, all of this time can be spent on more efficient tasks that will benefit your business. So, you save money in the long run by cutting back the time allocated for paper-based purchase order management.

What Features Should Electronic PO System Offer? 

Well, as far as we are clear on the benefits, it is time to find a good platform to handle your electronic purchases. In the wide variety of options available, you must look out for certain features in the software of your choice to ensure that your organization’s needs will be met. 

So, let’s overview the main factors to consider and features to look out for when choosing an Electronic PO system. 

Comprehensive User Interface 

You want to make sure that the software of your choice has a good UI. The main goal of digitizing the PO management process is to save time via automation and not spend additional time learning how to navigate through a complex interface. 

So, when doing your research, test the software and make sure it offers a good user interface. 

Email and Mobile Notifications for Approvers

Notifications is an important built-in feature that sends reminders to people responsible for approvals whenever a new workflow starts. 

Do not underestimate the importance of notifications. If you want the POs to go out on time, this is a pretty useful feature to ensure that everyone responsible for approval processes reviews the document at the right time. 

Workflow Automation

The main aim of electronic PO systems is to automate the PO management processes. Thus, the software of your choice should offer a highly customizable workflow automation tool. 

Conditional Permissions

You want to make sure that the software of your choice allows you to assign user roles and permissions for greater control and structure within the organization. 

This feature will allow you to establish more efficient procurement processes within the organization, saving resources and time. 

Budget-friendly

Some tools can be quite expensive, yet they do not offer enough functionality. So, make sure to do your research and find the software that suits both your budget and your business needs. You learn more about procurement tools here.

Frequently Asked Questions about ePO Systems 

Finally, let’s answer the most frequently asked questions regarding ePO systems. 

What is the Best ePO System in 2024? 

One of the best electronic purchase order systems in the current market is Tradogram. It offers features such as: 

• Allows to generate POs from scratch 
• Offers a comprehensive auto-filling database for POs
• Easy-to-use and has a good UI 
• Enhances transparency and reduces errors 
• Allows to set an approval workflow 
• Accessible from any device and allows to management of POs on the go 
• Provides customizable templates that link requisitions to PO creation. 

All the features of this platform are designed to enhance the efficiency of your procurement process. 

How to get Started with ePOs? 

To get started with ePOs, you need electronic purchase order software. So, let’s review how to get started with Tradogram. 

First of all, you need to create an account at Tradogram. After the completion of the first step, move forward with setting up the account; during this stage, you can set up an organizational profile and assign user roles/permissions. 

Then, move on with further customizations. You can start with creating and making all the necessary customizations for approval workflows. Make sure to tailor them to your business needs and requirements. 

Afterward, import all the necessary data from vendor information to product catalogs. Finally, proceed with the onboarding and training stage. 

How to Ensure Smooth Transition from Paper-Based POs to ePOs? 

The transition from established paper-based processes to electric workflows requires careful planning and execution. Even though it is an awesome solution to save time, reduce costs, and manage POs efficiently, you still will need employee training. 

Make sure to choose a good software that offers a variety of useful features for PO management. Then, onboard your employees and conduct employee training on how to use the software, explaining each user’s role. 

How to Track & Measure Results with Electronic Purchase Order Systems? 

Electronic Order Purchase Systems have robust built-in analytics. The analytics tool provides actionable insights on business spend, budgets, procurement metrics, and other aspects, allowing you to make data-driven decisions. 

How Can Tradogram Help You? 

Electronic PO System can help you optimize purchases within your organization and benefit you in multiple ways. So, if you are looking for the best electronic purchase system, Tradogram is the right choice. 

Tradogram is an all-in-one platform for procurement process optimization. It comes in handy with features for electronic purchase management, budgeting, automation, workflows, and many others. 

It is time to optimize electronic purchases via Tradgram and get the most out of new technology. Learn how we can help you here.