Ordering and procurement are two of the most critical factors in the success of construction projects. They are pivotal throughout the entire project during both design and construction phases – and their successful execution relies heavily on the experience, market knowledge, and resources of the project managers and contractors.
One powerful tool that many construction companies use to ensure their spending stays within the project budget is purchase orders. Basically, purchase orders are messages sent to suppliers with a request for an order for a product. It is the “approved” version of requisitions (request for purchase) which is another document which is simply a request from an employee to purchase something.
When issued, a purchase order creates a formal agreement between your company and the supplier that governs and documents the purchase. They serve as concrete, legal expectations for you and instructions for the seller. If expectations were not met, purchase orders could be used by both parties to determine where the request went wrong and who is at fault.
It is therefore imperative that your organisation use purchase orders so that you can have leverage in case a deal goes wrong. More importantly, your employees must always be reminded to use purchase orders for every single purchase and supplier not only to ensure their projects run on time and within budget but also to know where everything you pay for is actually going.
Efficient Purchase Orders Means Less Risk of Internal Fraud
Aside from being a legal contract, purchase orders also serve as audit trails. Purchase orders reduce the risk of internal fraud. for example, where an employee asks for a higher amount than needed to pay for purchases and then pockets the difference.
Moreover, having a good purchase order system is also a way to help identify and deter false vendors. It can also assist you in filtering personal purchases. Additionally, purchase orders can help you detect false or duplicate invoicing from an existing supplier – keeping money from leaking out of your business.
The Advantage of Using Ordering and Procurement Software Like Bizprac
Bizprac provides contractors with a better, more refined system for managing and tracking purchase orders. The software allows employees to create purchase orders and track material costs by labour activity. It also allows the company to monitor the status of each project in detail by instantly communicating when supplies are delivered.
By using Bizprac, you can increase your sales volume with less administrative work by comparing actual and estimated costs for purchase orders and updating dates of material delivery on one platform. With Bizprac in place, paper-based purchase orders will no longer be required, thus lowering the need for manual labour in the office which in turn lowers chance of error and increases overall efficiency.
Overall, a reliable ordering and procurement software like Bizprac will enable your employees to complete purchase order tracking, receive faster approval, manage access permissions, and access real-time payment status which eliminates misunderstanding and doubts, and allows for greater efficiency in both the office and the construction site.
If you are interested to see how Bizprac can help save you time and money in your business, please contact us on 1800 009 970 to discuss; alternatively, view a demonstration of Bizprac to see how you can save time prevent errors.