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Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Supplier Order Management Software — Everything You Should Know
Key take-aways
- Supplier Order Management refers to the management of activities involved in the placing and tracking of orders.
- Through the software, budgets can be simplified, planning is enhanced, expenses are well-managed, and purchasing mistakes are minimized.
- Supplier Order Management Software is a digital solution that simplifies and enhances the supplier order management processes.
Efficient management of supplier orders is crucial for the success and smooth operation of the business. In the past, this task often involved manual paperwork, spreadsheets, and endless phone calls. However, with the advancement of technology, companies now have access to software that simplifies and automates the entire order management process.
In this article, we will explore what supplier order management software is, its benefits, and some of the best software options available in the market.
After reading this article, you will have a great understanding of supplier order management software and you will be able to know what software available in the market best suits your operations.
Defining Supplier Order Management
Before diving into the software, let’s first understand Supplier Order Management.
Supplier order management refers to the activities involved in placing and tracking orders with suppliers. This includes creating purchase orders, managing inventory levels, tracking shipments, and reconciling invoices.
Traditionally, these processes were handled manually, which led to errors, delays, and inefficiencies. But with Supplier order management software, businesses can automate and optimize these processes, resulting in improved efficiency, cost savings, better customer services, reduced manual errors, and optimized overall procurement flow.
Supplier Order Management Software: What is it?
Supplier order management software, also known as “purchase order management software” is a digital solution designed to simplify and optimize the supplier order management process.
It provides businesses with a centralized platform to manage all aspects of their supplier orders, from creating purchase orders to tracking deliveries and invoicing. Typically, this platform includes features such as order creation, order tracking, inventory management, supplier collaboration, and reporting capabilities.
The supplier order management software integrates with other systems such as Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Supply Chain Management (SCM) to ensure a seamless flow of information across different departments.
This integration enables businesses to have real-time visibility into order status, inventory levels, and supplier performance, enabling them to make informed decisions and respond quickly to changing market demands.
Benefits of Supplier Order Management Software
Implementing Supplier Order Management Software offers numerous benefits for businesses engaged in procurement. Here are some key advantages:
1. Improved Efficiency
Supplier Order Management Software automates manual tasks, simplifying the procurement process. It eliminates the need for manual data entry, reduces errors, and speeds up the order processing cycle. It allows businesses to easily find and purchase products from item catalogs, set up automatic purchases, and streamline item deliveries or pickups. This automation saves time and effort, making the procurement process more efficient.
Establishing this system may require your time and effort. However, its benefits will save you a lot in the long run.
2. Simplified Budgeting
The software provides valuable information about item descriptions and prices, making budgeting easier for both incoming projects and day-to-day operations. By having records of past spending, businesses can estimate costs and make informed decisions to ensure profitability.
For instance, you’ll be entering a new venture, with this platform you can easily estimate, track, and see if the venture is worth it or not.
3. Enhanced Planning
Planning is crucial in running a business. The Supplier Order Management Software allows you to analyze past purchase orders and adapt to market trends and cycles. By understanding spending patterns and accounts payable records, you can better anticipate future activities, plan accordingly, and make strategic decisions to stay ahead of the competition.
4. Effective Handling of Unexpected Expenses
Businesses often face unexpected expenses, and Supplier Order Management Software can assist in managing these situations. The software tracks expenses across departments, allowing the accounts payable department to anticipate cash outflows and incorporate unexpected purchases into budget planning.
5. Minimized Purchasing Mistakes
Purchase mistakes can be costly for small businesses, but Supplier Order Management Software minimizes procurement glitches. By having a record of purchased items, prices, and quantities, you can easily cross-reference purchase orders to correct any mistakes or miscommunications with suppliers. This helps avoid purchase errors and ensures accurate procurement within the organization.
6. Improved Inventory Management
The software simplifies inventory management by tracking incoming orders and quantities. By matching physical inventory with purchase orders and invoices, businesses can maintain accurate records, minimizing discrepancies and facilitating smooth audits.
Best Supplier Order Management Software
Now that we understand the benefits of Supplier Order Management Software, let’s explore some of the best options available in the market:
1. SAP Ariba
SAP Ariba is a widely recognized supplier management solution that offers comprehensive features for end-to-end procurement processes. Features such as order creation, tracking, and collaboration with suppliers. It also provides a user-friendly interface, robust order management capabilities, and seamless integration with other SAP modules. This software helps businesses streamline their order management processes.
2. Oracle NetSuite
Oracle NetSuite is a cloud-based ERP system that includes robust order management functionality. It offers automated order creation, inventory tracking, and real-time reporting. NetSuite’s intuitive interface and scalability are suitable for businesses of all sizes.
3. Coupa
Coupa is a cloud-based procurement software that offers a range of modules, including supplier order management. It provides features such as automated order processing, supplier collaboration tools, and real-time analytics. Coupa’s intuitive interface and mobile capabilities make it a popular choice among businesses.
4. Zoho Inventory
Zoho Inventory is a cost-effective option for small and medium-sized businesses. It offers basic order management features, including order creation, tracking, and inventory management. Zoho Inventory integrates with other Zoho applications, providing a holistic solution for businesses with diverse needs.
5. IBM Order Management
IBM’s Order Management system is a digital solution that tracks and manages the lifecycle of an order. It provides real-time visibility into order status, inventory levels, and fulfillment processes.
Conclusion
Efficient supplier order management is vital for the success of businesses, and the advent of technology has ushered in a new era of automation and optimization in this realm. This article delves into the world of supplier order management software, providing insights into what it is, its benefits, and showcasing some of the best software options available.
Frequentlyasked questions
What is Supplier Order Management?
Supplier order management refers to the activities involved in placing and tracking orders with suppliers.
What is Supplier Order Management Software?
Supplier order management software, also known as “purchase order management software” is a digital solution designed to simplify and optimize the supplier order management process.
Is there any Suppler Order Management Software available?
Yes, here are some of them: SAP Ariba, Coupa, Zoho Inventory, Oracle Netsuite, and IBM Order Management.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
