What is Purchase Order Automation and how to automate the PO process? What is Purchase Order Automation? A purchase order, or PO, is a document that authorises a buyer to purchase goods or services from a seller. A PO automates the ordering process and can help buyers and sellers keep track of what has been…
Welcome to our deep dive on Purchase Order (PO) Process Automation. This seemingly technical term holds the key to an organisational paradigm shift that leverages technology to streamline one of the most essential and often cumbersome company processes—the Purchase Order Management.
In its core, PO Process Automation is the use of software and technology to automate and streamline the entire purchase order process. It includes automating the creation of purchase orders, their approval, the tracking of orders, receiving, matching, and closure, reducing the need for manual inputs, human errors, and tedious paperwork. The adoption of this technology-driven approach enhances transparency, efficiency, accuracy, and compliance in an organisation’s procurement efforts.
Interestingly, recent reports suggest a propulsion in this market. A study conducted by Market Research Future forecasts that the global procurement software market is expected to grow at a CAGR of 9.6% during the 2018-2023 period, reaching a value of USD 9.96 billion by 2023. This indicates a dynamic shift in how businesses are approaching their procurement activities globally, with automation at the helm.
Moreover, market trends indicate an increasing preference for bespoke software development, allowing companies to tailor PO process automation systems to their unique needs, rather than adopting off-the-shelf solutions. This trend underscores the shifting importance of personalized software that aligns seamlessly with the individual processes and requirements of businesses, creating a competitive edge.
This rise in bespoke software solutions is driven by rapid technological advancements, offering functionalities that go beyond the conventional like real-time order tracking, cloud-based access, integrations with other systems like Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM), and data analytics capabilities. The potential leap in productivity and cost-saving is significant and tangible. As per a McKinsey report, companies that have embraced digital procurement have achieved cost savings of 3% to 10%.
However, while automation helps streamline and expedite processes, it does not eliminate the strategic importance of people in the equation. It’s the combination of human insight and technological application that truly spearheads the transformation of procurement functions.
These discussions hint at a future where manual, paper-based PO processes are rendered obsolete, replaced by intelligent, efficient, and customised, automated solutions. It’s a brave new world out there, with PO Process Automation playing an instrumental role in shaping it.
We invite you to explore more around this fascinating subject here in our PO Process Automation section. Our main blog area also hosts an array of subjects that delve into the nuances of software, app and web development. If you would like to discuss these topics or if you need more information, please feel free to contact us at Leeds Software Development. We are always on hand to engage, inform, and assist you.