Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

An efficient procurement process plays a focal role in guaranteeing seamless business operations. Among the many components that expedite procurement tactics successfully is purchase order tracking.

While manual PO tracker spreadsheets are loaded with never-ending paperwork and is time-consuming, it makes the entire procurement process vulnerable to risks of project delays. Thus, creating an automated PO tracking system comes in handy. Fundamentally, it is an influential solution to simplifying purchase management. 

I created a free, downloadable spend analysis template. This includes an editable Excel template and a PowerPoint presentation to help you record and analyze your spending data, which is essential for purchase orders. I even created a video where I’ll explain how you can use this template.

What isa PO Tracker?

A purchase order tracker, also known as a PO tracking system, is either a manual or an electronic and digital process that manages the entire lifecycle of purchase orders. It is a centralized platform for businesses to create, track, and analyze purchase orders efficiently.

This system is a gateway for procurement teams to zero in on ineffective areas. After which, they can address these concerns and make necessary actions to improve them. They will also be able to make sure that they receive the proper quality products to maintain ideal inventory levels.

What toKnow About Purchase Orders

To put it simply, purchase orders (POs) are a legal form of a document issued by a company (the buyer) to a supplier that reflects its intent to acquire goods and services. Naturally, they indicate the item descriptions, its quantity, the agreed-upon prices and delivery dates, and payment terms. It acts as a formal contract that clears and secures both parties on the same page. With that, it reduces the risks of a dispute during the entirety of the procurement process. Thus, it is also vital that you properly manage your POs–to do this, let us introduce purchase order tracking.

POTracker Types

There are 2 purchase order tracker types you can use, however, one may be most beneficial to you.

1. Manual Purchase Order Tracker

In the most traditional sense, manual PO trackers are paper documents. They are records that are primarily on paper and done manually, with the force of personnel.

Employees usually do a great deal of bookkeeping to keep purchase order records well-maintained and updated. Although they are a bit old-fashioned, they serve the same purpose as modernized PO tracker software and systems.

2. Digital Purchase Order Tracker

This type of PO tracker keeps up with the modernization of the business world. Some procurement teams build systematic software to keep their records up-to-date all in one place. Personnel’s work is done more manageable and more automated. 

To keep up with the evolution of the business world, adopting a digital purchase order tracker is the most beneficial for you.

PO Tracker’sRelevance in Your Business

A PO tracker is an indispensable tool that empowers your business to achieve streamlined operations and better control over purchasing activities. Here are 3 reasons why you need a PO tracker to keep your business afloat:

1. Centralized Procurement Management

Not only does a PO tracker keep a compact purchase order management, but also overall procurement management. This centralization sustains procurement processes as well-organized and easily accessible to you, your suppliers, and authorized employees. Naturally, it also enhances collaboration between all relevant parties. 

2. Sleek and Swift Approval Processes

Concerning maintaining a centralized system, a PO tracker also facilitates seamless approval workflows that ensure purchase orders adhere to budget constraints and compliance guidelines. Because of its advanced technological characteristics, it reduces manual interventions and supply chain disruptions and enables you to make timely purchases quicker without any hassle.

3. Supplier Assessment

Along with keeping up-to-date regarding purchase orders, a PO tracker also offers valuable insights into supplier performance. You can assess your suppliers based on factors such as delivery schedules, product quality, and compliance with agreed-upon terms that are indicated on purchase orders. In this way, you may also be able to make well-informed decisions that will ultimately lead to improved relationships.

UnderstandingPurchase Order Trackers

The PO tracking system does not only make procurement teams’ work easier, but it also helps a great deal in business operations functions. Aside from tracking purchase orders from the get-go, it also guarantees that orders are processed smoothly. Additionally, because of its real-time capabilities, it makes sure of a seamless process of orders where deadlines and customer satisfaction are met. 

Furthermore, it promotes transparency since it makes tracking accessible to all relevant parties. You and your suppliers can easily view the status of purchase orders and updates on deliveries first-hand. 

Aside from that, a PO tracking system also fosters cost optimization. Other than tracking updates regarding orders, it also monitors expenses and compares planned costs to actual expenditures. This financial visibility enhances budget management and helps in making data-driven decisions.

Having a digital record also captures detailed information on all purchasing activities, simplifying audit trails, and generally promoting accountability among employees involved in procurement processes. The accuracy promised also leads to better inventory management and minimizes the impact of order discrepancies.

Conclusion

Purchase order trackers are powerful software that aids you in managing your entire procurement process effectively. From tracking orders, that stem from the creation of purchase orders to analyzing data, you can make the best actions appropriate for your needs.

Understanding the concept of a purchase order tracker will help you envision new goals for your company. It saves you a lot of time and effort in keeping your operations coherent and as seamless as possible. It also keeps your records in one digitalized and centralized platform that evokes transparency with all authorized personnel involved in procurement.

With that, you can optimize your procurement workflows, strengthen relationships with your suppliers and between your departments, and drive your business for overall growth and success.