Avoidable purchase order mistakes can quietly drain your budget and create unnecessary delays. For small businesses working with tight margins, every dollar and minute counts.
Below are the most common PO mistakes and how to prevent them.
1. Skipping the Requisition Process
One of the biggest traps is bypassing the purchase requisition stage. This step ensures all orders are reviewed and approved before financial commitments are incurred or money changes hands. Without it, businesses risk duplicate orders, budget blowouts, or unauthorised spending.
Implementing specific requisition processes can keep things streamlined and under control.
2. Lack of Standardisation
Using inconsistent formats or manual processes for purchase orders often leads to confusion. A missed field here or a typo there can cause supply chain headaches.
Standardising PO templates or, better yet, investing in software or an application that automates the process reduces errors and saves valuable admin time.
3. Poor Record-Keeping
Storing POs in scattered files or relying on memory can mean trouble when it’s time to reconcile invoices or handle audits. A cloud-based PO system keeps everything in one place, with easy access to order history and documentation when needed.
4. Not Tracking Order Status
If no one’s following up on open orders, delays go unnoticed until it’s too late. Assign responsibility for tracking orders and flag overdue deliveries early to avoid disruptions to your operations.
Streamline And Automate Your Purchasing with GT Management’s WebReq
Are you tired of working on manual processes and dealing with costly PO errors? GT Management offers smart, scalable purchase order solutions that simplify procurement and boost efficiency. Contact us today to learn more.
