Industry leaders often tend to underestimate things that are crucial for their business. Out of all the documents that an organization has to deal with every day, purchase orders (PO) are indispensable.
No matter how much you ignore customer purchase orders as the least important papers to handle, they are an integral part of your products and services. They describe the potential sales you make and are a key to streamlining other business workflows.
Equally important and tedious is data capture from purchase orders when you have them in bulk for processing. However, irrespective of the process involved, purchase order data capture is a necessity for businesses and here’s why.
The human mind is prone to making silly mistakes! It cannot keep everything stored and organized in its memory all the time.
Just like invoice data extraction, purchase order data is paramount to avoid accepting duplicate orders from your customers. When you look forward to expanding your products and services, it’s important you know what are your customer requirements and what things you already have in your inventory.
Data captured from purchase orders can prevent you from supplying the same order multiple times. Moreover, it gives you clear information about the customers so you can be sure about your future sales to them.
2. Verify sales invoices
Data capture from purchase orders makes it easier to verify sales invoices. When you send sales invoices to your customers, you need to check all the purchase orders you have received so you can ensure the right goods have been supplied to your customers.
A purchase order reconciliation streamlines the process as you just have to match your sales invoice data with PO data. It keeps track of all the orders along with their prices and amount.
3. Help in gaining insights
Since purchase orders contain detailed information about every product your customers order from you, it’s your primary source of data for analyzing your business performance.
You might have several questions about the products you sell, the customers you deal with, and the investments in inventories you make. Data capture from purchase orders help you analyze your previous decisions and prepare your supply chain for the future business.
You may get answers to questions like “Is the new product good for the company’s expansion?”, “Can there be a cheaper or affordable supplier?”, “Is the company in a condition to deal with such huge investments?”, “how should you optimize your supply chain to ensure least investment in idle inventory and yet not lose any sales opportunity?”
4. Manage expenses
Just like vendor invoice extraction, purchase order data capture is important to keep track of all the sales orders. With PO data, you can easily project the cost of everything that enters your business, in order to fulfill the Pos on hand.
It may range from lighting or heating to office supplies and other accessories. Moreover, with these costs, you will get to know what is the production cost of a particular product you purchase from suppliers. Is it of any benefit to you or should you just get rid of the unnecessary raw material stacking up in your warehouse?
With such imperative information in hand, you will find it easy to plan your budget for the next financial cycle and be more cautious about your expenses.
KlearStack is exactly what you need!
A template-less, end-to-end automated, and document decision support integrated software to extract data, KlearStack serves business leaders across industries to streamline their document processing workflows.
Our clients are actively using KlearStack as a data extraction software for data capture from purchase orders, invoices, loan documents, receipts, and other similar documents. Book a free consultation call with us to know about how we can help your business scale.