It's a straightforward topic that every business deals with. But don't overlook why purchase orders matter.
Hi, I’m James this is Whiteboard Wednesday, we’re going to talk about all things Fishbowl. Let’s talk about Purchase Orders. I’m excited, are you?
We’re not going to do the nitty gritty details of what a purchase order is for, you should probably already know that, and there’s going to be some specifics to your company that will vary.
But, obviously, we’re going to have: the business, the vendor, the “ship to” if that’s any different, your quantity, your item number, your description, cost per line item, your subtotal, taxes, all that good stuff. All relevant, all important, all crucial… but why?
What does a purchase order really do?
Well, one, it’s how you procure your goods, you’re sending it to your vendor, your supplier, saying, “hey, this is what I want”. But more importantly, this is something that gets overlooked a lot, especially with smaller businesses, or businesses just starting out, it is a CONTRACT between you and the vendor.
So, if there is ever a dispute, if there is ever a disagreement about payment, about shipment, about even performance, you have something to reference. A lot a times companies just grow organically, as they should, and when they’re small they don’t always think about the necessity of formal purchase orders.
There’s almost am unspoken agreement between a small-time business and a supplier or vendor, but the problem with that is it doesn’t keep you safe for down the road. If you need information about Vendor XYZ, about some type of issue, whether it’s financial or otherwise.
And, if you’re keeping purchase orders, keeping all those records, that’s good. Now you have something to reference, it is the contract you are keeping. But look here, we’ve got all these purchase orders from one company. But here’s another. Here’s a different supplier. Here’s another.
Now maybe you’re filing these separately you can go through by date, hopefully that’s the case, but you’ve got all these records, how do you immediately find exactly what you need? According to date, according to vendor, maybe even according to an amount, or item, or quantity?
Well, that’s where we get the automated solution involved. So not only are you protecting yourself with a purchase order, you’re also protecting yourself because you know exactly where to find it, you can access it very quickly. You’re not wasting time hunting these other things down and you can get back to work. Isn’t that great?
So, remember, a purchase order protects you, so protect yourself. And then go one step further, integrate, get an automated solution, and now you’re really protected. Because not only do you have the contract in place, you know when to to find it, if you need it, when you need it.
So that’s this Whiteboard Wednesday, I’m James, and I’m all about protect… hmmm, that sounds bad.