In the fast-paced world of finance, where accuracy and efficiency are paramount, businesses are turning to innovative solutions to streamline their processes. One such game-changer is purchase order automation – a technological marvel that not only simplifies the creation and processing of purchase orders but also brings a myriad of benefits to finance teams. In this blog post, we'll delve into what purchase order automation is, how it works, the incredible advantages it offers finance teams, and how you can leverage Kloo to streamline your financial workflows.
What is Purchase Order Automation?
Purchase order automation is the method of enforcing and automate a purchase order approval process. A centralised software would automatically send a purchase request to the appropriate team member for review and approval. Once approved, the purchase order would automatically be created within the ERP, eliminating the need for data entry. Ultimately, it removes the requirement for people to physically route purchase orders for review and approvals via physical paper or email and streamline the process.
The purchase order workflow can look different for many organisations and finance teams, but usually consists of: raising a request, creating the purchase order, and approving the purchase order.
Common Challenges from Manual Processing
Often when processing in a manual, paper-based environment, organisations face many similar challenges. While these may not all the same for you, we see that the below issues are often what drives automation at an organisation.
- Lack of efficiency in process
- Paper heavy
- No accountability or visibility into the process
- Security risks
- No process regulations or control
- Time burdensome
How Purchase Order Automation Works
Purchase order automation operates on the principle of streamlining repetitive tasks and eliminating bottlenecks in the purchase order workflow. Here's a brief overview of how it works:
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Requisition and Creation: Users initiate purchase requests through a user-friendly interface. The automation software then generates purchase orders based on predefined templates.
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Approval Workflow: Purchase orders undergo a seamless approval process. Automation ensures that approvals are routed to the right individuals, reducing delays and improving accountability.
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Order Transmission: Once approved, the purchase order is automatically transmitted to vendors, reducing the risk of errors associated with manual data entry.
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Tracking and Reporting: Finance teams can track the status of purchase orders in real-time, generating insightful reports that aid in decision-making and strategic planning.
Benefits of Purchase Order Automation
Automating the purchase order process is a step towards implementing spend management best practice. Moving from manual processes or outdated systems to purchase order automation comes with multiple benefits.
If you are dealing with lots of paper, email, legacy systems, and lack of security when processing purchase orders, then implementing an automation solution will provide you and your team with many benefits. Whether you are a small company or large, organisations of all sizes can take advantage of automation and reduce the time spent on low value activities.
While results vary for every organisation, below are the most common benefits that companies experience when automating the purchase order process:
- Increase of process efficiency
- Cost savings
- Reduction of human error
- Visibility into processes
- Flexibility and control
How Kloo Automates the Purchase Order Process
Purchase order automation provides many benefits, including increased productivity, better compliance with corporate policy and contract terms, increased visibility into company spend, and more.
Kloo streamlines user experience on the platform by leveraging advanced AI technology to allow users to raise purchase requests via email or chatbot using natural language. Optical character recognition (OCR) and AI technology to extract and store invoice data on the platform, saving your team valuable time and increasing accuracy with automated PO matching. Once approval flows have been set up and the purchase request has been raised, purchase orders are automatically generated directly within the platform.
Kloo provides the solution for businesses looking to integrate an AI-powered platform to automate their purchase order processes. Save time, reduce human error and manual labour, and embrace efficiency with smart automation and AI embedded throughout the entire procure-to-pay process.
In conclusion, purchase order automation is a transformative solution for finance teams looking to optimise their processes. By embracing this technology and integrating it seamlessly with ERP systems, businesses can achieve unprecedented levels of efficiency, accuracy, and cost savings. The era of manual and cumbersome purchase order management is giving way to a new age of streamlined, automated, and future-ready finance operations.
