Few things eat away at profit margins like the high cost of goods. It is for this reason that 42 percent of businesses want to reduce the costs of purchasing goods, while 39 percent of businesses want to streamline their purchasing, Ardent Partners reports. However, businesses cannot achieve these objectives without getting more control over their purchases.
Only half of all businesses have “strong visibility” into purchases, Ardent Partners finds. A major contributor to this lack of spending visibility is the use of non-purchase order-based invoices.
Generating electronic purchase orders with solutions such as NexusPayables solves this problem.
NexusPayables manages the approval, creation, and electronic submission of purchase orders with built-in best practices and customizable business rules.
Automating the management of purchase orders allows organizations to:
• Generate purchase orders and electronically route them for approval
• Send approved purchase orders to suppliers for paperless processing
• Match invoices and purchase orders to validate price, quantity, and items
• Track matched invoices against the purchase order
Importantly, generating electronic purchase orders with NexusPayables enables businesses to improve visibility into purchases, identify budget variances and maverick spending more quickly, and strengthen internal reporting to ensure contract compliance and gain leverage with suppliers. Two-thirds of businesses surveyed by Ardent Partners want earlier visibility into purchasing. In addition, support for mobile devices ensures that remote and on-the-go purchasers can use the tool.
All of this reduces the cost of goods.