{"id":6952,"date":"2024-10-22T10:54:31","date_gmt":"2024-10-22T10:54:31","guid":{"rendered":"https:\/\/www.zaharasoftware.com\/?p=6952"},"modified":"2025-10-02T08:56:49","modified_gmt":"2025-10-02T08:56:49","slug":"healthy-po-system","status":"publish","type":"post","link":"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/","title":{"rendered":"What Does a Healthy PO System Looks Like?"},"content":{"rendered":"<p>No matter the size of your business, you survive by the size of your bottom line. Keeping it in check can therefore be the key to success, especially when you\u2019re growing fast and everyone\u2019s eyes are on bottom line\u2019s glamorous sister: <em>profit. <\/em><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#the_key_features_of_a_healthy_po_system\" >The key features of a healthy PO system.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#ease_of_use\" >Ease of use<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#improved_visibility\" >Improved visibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#looks_like_youve_covered_a_lot_of_info_were_here_to_answer_any_questions_you_might_have\" >Looks like you&#8217;ve covered a lot of info. We&#8217;re here to answer any questions you might have.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#rigorous_controls\" >Rigorous controls<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#full_automation\" >Full automation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#zahara_helps_to_complete_all_key_aspects_of_the_ap_process\" >Zahara helps to complete all key aspects of the AP process.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#customisable_approval_workflows\" >Customisable approval workflows<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#what_would_an_effective_approval_workflow_look_like\" >What would an effective approval workflow look like?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#clear_purchase_orders\" >Clear Purchase Orders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#what_should_be_on_a_purchase_order\" >What should be on a purchase order?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#easy_integration\" >Easy integration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#clearly_defined_roles\" >Clearly defined roles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#a_word_about_zahara\" >A word about Zahara<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/#let_us_guide_you_through_zaharas_ap_automation\" >Let us guide you through Zahara&#8217;s AP Automation<\/a><\/li><\/ul><\/nav><\/div>\n\r\n<p>Perhaps you\u2019ve already done the smart thing and turned to <a href=\"https:\/\/www.zaharasoftware.com\/accounts-payables\/ap-automation\/\">AP Automation<\/a> to reduce human error and streamline operations but what should a good, working PO system look like? What are the benefits you should be getting out of it?<\/p>\r\n<p>In this article we\u2019ll take a look at the key features of a healthy PO system. That\u2019s one that\u2019s functioning to the best of its ability and reaping you the benefits.<\/p>\r\n<p>If you\u2019ve got questions like \u2018<a href=\"https:\/\/www.zaharasoftware.com\/guide\/what-is-a-purchase-order\/\">What is a Purchase Order<\/a>?\u2019 or want to know more about <a href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/purchase-order-management\/\">Purchase Order Management<\/a>, follow the links for articles on those. If not, let\u2019s jump in.<\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"the_key_features_of_a_healthy_po_system\"><\/span>The key features of a healthy PO system.<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>A good purchase order system really ought to be doing some specific things for you \u2013 improved speed, efficiency and reduced risk of error.<\/p>\r\n<p>In this section we\u2019ll dive into what we (the people who\u2019ve been automating <a href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/best-po-system\/\">Purchase Oorder systems<\/a> for, well, a good while now) think those key features are. In short:<\/p>\r\n<ul>\r\n\t<li>Ease of use<\/li>\r\n\t<li>Improved visibility<\/li>\r\n\t<li>Rigorous controls<\/li>\r\n\t<li>Full automation<\/li>\r\n\t<li>Customisable approval workflows<\/li>\r\n\t<li>Clear Purchase Orders<\/li>\r\n\t<li>Easy integration<\/li>\r\n\t<li>Clearly defined roles<\/li>\r\n<\/ul>\r\n<h2><span class=\"ez-toc-section\" id=\"ease_of_use\"><\/span>Ease of use<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>How many times have you wanted to rip a monitor off your desk, hurl a smartphone out of an open window? Then, when good judgement gets the better of you, asked: <em>shouldn\u2019t technology make my life easier? <\/em><\/p>\r\n<p>You\u2019re right. It should \u2013 A healthy PO system won\u2019t leave you wanting to do harm to your hardware. One way to look at this is that, if your PO system is working well, anyone in the company should be able to use it. This even applies to the staff with the kind of roles that might only require them to raise a PO once or twice a year, and no matter the size of the purchase.\u00a0<\/p>\r\n<p>Raising POs might require some light training, but in a healthy system things will be intuitive. When you open your software, possible actions should be clear and a few clicks away.<\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"improved_visibility\"><\/span>Improved visibility<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Once you\u2019ve got your PO order system up and running it should provide you with better visibility over your finances than your previous system did. Your PO software should show you some key things, such as:<\/p>\r\n<ul>\r\n\t<li>Who is requesting a spend<\/li>\r\n\t<li>How much they want to spend<\/li>\r\n\t<li>Where they want to spend the money<\/li>\r\n\t<li>What they want to spend the money on<\/li>\r\n\t<li>All the above information on every PO made and penny spent since your automated <a href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/best-po-system\/\">PO system<\/a> was first implemented<\/li>\r\n<\/ul>\r\n<p>There are some other important bits of information that you\u2019ll want to see clearly in the system and on your purchase orders, but we\u2019ve got a section on that below.<\/p>\r\n<p>Audit trails deserve a word here too. With a healthy PO system you should have <em>all <\/em>the information on a purchase from beginning to end. That\u2019s all the above info, plus things like who approved the transactions. Basically, if you want info on a purchase, you should be able to dig through the books and find it.<\/p>\r\n<style>\r\n\t.testbox {\r\n    border-radius: 11.725px;\r\n    background: linear-gradient(89deg, #FF5C00 0.96%, #FFB800 113.64%);\r\n    box-shadow: 2.198px 2.931px 7.548px 0px rgba(0, 0, 0, 0.10);\r\n    display: flex;\r\n    padding: 11px 14px;\r\n    color: #fff;\r\n    align-items: center;\r\n    justify-content: center;\r\n}\r\n\t.ft18 {\r\n\t\tfont-size:18px!important;\r\n\t\tfont-weight: 400!important;\r\n\t}\r\n<\/style>\r\n<div class=\"testbox ft18 mt60 mb60\"><h2 class=\"pl10 pr20 mt10 mr20 fw300 ft18 text-center text-white\"><span class=\"ez-toc-section\" id=\"looks_like_youve_covered_a_lot_of_info_were_here_to_answer_any_questions_you_might_have\"><\/span>Looks like you&#8217;ve covered a lot of info. We&#8217;re here to answer any questions you might have.<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n  <div> <a href=\"https:\/\/www.zaharasoftware.com\/book-a-demo\/\" class=\"btn btn-solid-blue\" role=\"button\">Schedule a Friendly Call<\/a><\/div>\r\n<\/div>\r\n\r\n<h2><span class=\"ez-toc-section\" id=\"rigorous_controls\"><\/span>Rigorous controls<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Your system of controls should not be a leaky ship. If people are spending without approval, then you\u2019re missing out on one of the key benefits of a well-organized PO system.<\/p>\r\n<p>You don\u2019t want Jez from accounts putting company money to his own use so don\u2019t let him. Make sure <em>every <\/em>spend is accounted for with approvals from management and purchase orders from the ground up.<\/p>\r\n<p>Another feature you should look for are departmental\/employee budget controls. These will keep your employees on target with spend limits and ensure project costs don\u2019t snowball.<\/p>\r\n<p>All the above combined with the ability to prevent money-draining double orders and eliminate human error, rigorous spend controls will keep your bottom line neat and tidy and your CFO smiling (always highly important).<\/p>\r\n<p>But for all of this to be done you\u2019ll need to ensure you have&#8230;<\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"full_automation\"><\/span>Full automation<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Paper. Who needs it? In this day and age, you should be fully digital. For your PO system to be working properly all your purchase orders should be raised digitally. If you\u2019re still operating on a part-paper system you\u2019re leaving gaps that will be reflected in your audit trail or weaknesses in spend controls.<\/p>\r\n<p>Likewise, approvals should be done in your PO system where they can be recorded and added to the audit trail.<\/p>\r\n<style>\r\n\t.testbox {\r\n    border-radius: 11.725px;\r\n    background: linear-gradient(89deg, #FF5C00 0.96%, #FFB800 113.64%);\r\n    box-shadow: 2.198px 2.931px 7.548px 0px rgba(0, 0, 0, 0.10);\r\n    display: flex;\r\n    padding: 11px 14px;\r\n    color: #fff;\r\n    align-items: center;\r\n    justify-content: center;\r\n}\r\n\t.ft18 {\r\n\t\tfont-size:18px!important;\r\n\t\tfont-weight: 400!important;\r\n\t}\r\n<\/style>\r\n<div class=\"testbox ft18 mt60 mb60\"><h2 class=\"pl10 pr20 mt10 mr20 fw300 ft18 text-center text-white\"><span class=\"ez-toc-section\" id=\"zahara_helps_to_complete_all_key_aspects_of_the_ap_process\"><\/span>Zahara helps to complete all key aspects of the AP process.<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n  <a class=\"btn btn-solid-blue ft18\" href=\"https:\/\/www.zaharasoftware.com\/wp-content\/uploads\/2024\/09\/APGuide.pdf\" role=\"button\" title=\"Our Guide to Accounts Payable\" target=\"new\">Download Our Guide to AP Automation<\/a>\r\n<\/div>\r\n<h2><span class=\"ez-toc-section\" id=\"customisable_approval_workflows\"><\/span>Customisable <a href=\"https:\/\/www.zaharasoftware.com\/guide\/workflows-approvals\/\">approval workflows<\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Approval workflows in a healthy PO system should be flexible. If someone is off sick or on holiday (one they couldn\u2019t pay for with company money, thanks to your spend controls) then the system shouldn\u2019t get jammed up. <strong>Remember, a good PO system is here to save you time<\/strong>. Make sure the approval system automatically reroutes to a member of staff at the right level who <em>is <\/em>present.<\/p>\r\n<p>What\u2019s more, your higher ups should have the ability to jump into the spend process and make adjustments as and when they need.<\/p>\r\n<p><a href=\"https:\/\/www.zaharasoftware.com\/business-efficiency\/best-purchase-order-software\/\">Compare the best Purchase Order Software.<\/a><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"what_would_an_effective_approval_workflow_look_like\"><\/span>What would an effective approval workflow look like?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>In case you\u2019re wondering, an effective approval workflow might look something like this&#8230;<\/p>\r\n<ol>\r\n\t<li>Employee\/department identifies a purchase need<\/li>\r\n\t<li>A purchase order request is raised<\/li>\r\n\t<li>Request is approved by a higher up<\/li>\r\n\t<li>A purchase order is raised and sent to the supplier<\/li>\r\n\t<li>The supplier fulfills the order<\/li>\r\n\t<li>You document the delivery of your goods with a goods received note (<a href=\"https:\/\/www.zaharasoftware.com\/guide\/grn-an-order\/\">GRN<\/a>)<\/li>\r\n\t<li>The supplier\u2019s invoice is processed in an automated invoice processing system<\/li>\r\n\t<li>The automated IP system three-way matches the invoice against the GRN and PO<\/li>\r\n\t<li>Assuming no discrepancies are found, payment is made<\/li>\r\n<\/ol>\r\n<h2><span class=\"ez-toc-section\" id=\"clear_purchase_orders\"><\/span>Clear Purchase Orders<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>In a healthy <a href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/best-po-system\/\">PO system<\/a> your purchase orders will be clear and easy to understand. This is for your benefit and the benefit of the supplier you\u2019ll be sending them to.\u00a0<\/p>\r\n<p>Know what kind of purchase order you are raising. There are four main types:<\/p>\r\n<ul>\r\n\t<li>Standard Purchase Order (SPO) &#8211; this is your run-of-the-mill PO, good for everyday use and single purchases<\/li>\r\n\t<li>Planned Purchase Order (PPO) &#8211; used to indicate intention of purchase, used if you might make repeat purchases or if your supplier needs additional notice to raise the supplies and fulfill your order<\/li>\r\n\t<li>Blanket Purchase Order (BPO) &#8211; used to fix a price over a long time (a year or more) on repeat orders<\/li>\r\n\t<li>Contract Purchase Order (CPO) &#8211; used to legally bind two parties into a long-term buying agreement<\/li>\r\n<\/ul>\r\n<h2><span class=\"ez-toc-section\" id=\"what_should_be_on_a_purchase_order\"><\/span>What should be on a purchase order?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Make sure your POs include the following information:<\/p>\r\n<ul>\r\n\t<li>A unique PO number<\/li>\r\n\t<li>The parties involved \u2013 company names, addresses, contact info<\/li>\r\n\t<li>Shipping address<\/li>\r\n\t<li>Expected delivery date<\/li>\r\n\t<li>Items required and amounts thereof<\/li>\r\n\t<li>Payment details \u2013 expected payment date and method of payment<\/li>\r\n\t<li>You might also include terms and conditions of the purchase<\/li>\r\n<\/ul>\r\n<p>To keep things standardised, we recommend using a PO template. It\u2019ll make things easier for everyone. You could choose to design one yourself. Alternatively, <a href=\"https:\/\/www.zaharasoftware.com\/template-purchase-order\/\"><strong>Zahara has a template you can download for free<\/strong><\/a>.<\/p>\r\n<p>We also have a <a href=\"https:\/\/www.zaharasoftware.com\/free-purchase-order-generator\/\">Purchase Order Generator<\/a> that\u2019s <strong>free to use<\/strong>. It&#8217;s designed to work similarly to the PO generator in Zahara\u2019s purchase order software.<\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"easy_integration\"><\/span>Easy integration<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>A good PO system should allow for and be integrated with your other business systems so that your staff don\u2019t have to zip between programs. Having data on the various parts of your business flowing between these systems is also the mark of your new tech working well.<\/p>\r\n<p>That\u2019s because a large benefit of automating your purchase order systems is visibility \u2013 the kind of visibility that will allow you to see the full scope of your organisation, as well as the kind we mentioned above.<\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"clearly_defined_roles\"><\/span>Clearly defined roles<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>In a healthy PO system everyone\u2019s role should be clearly defined. This will prevent misunderstandings that might hold up the speed of your business operations.<\/p>\r\n<p>Outside the software, staff should know who has the power to approve and where they fit into the purchasing chain. When it comes to communication around projects and spending, channels will be open, dialogue across departments and between staff members will be easy to facilitate.<\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"a_word_about_zahara\"><\/span>A word about Zahara<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>We\u2019re not here to push a hard sell. We\u2019re happy to share our insights on the topic and we hope you found this content useful, but as we said above we\u2019ve been automating PO systems for quite a while now. Over the years we\u2019ve learnt a thing or two \u2013 mainly to listen to our customers. The result is crafted AP-automation software that does exactly what you want it to, with no funny business.<\/p>\r\n<p>Zahara <a href=\"https:\/\/www.zaharasoftware.com\/purchase-order-software\/\">Purchase Order Software<\/a> integrates with business software from QuickBooks to Sage and beyond. It also works in tandem with our handy (if we may say so ourselves) <a href=\"https:\/\/www.zaharasoftware.com\/invoice-processing\/invoice-processing-software\/\">Invoice Processing Software<\/a> to do three-way matching and deliver you the benefits you\u2019ve been reading about above.<\/p>\r\n<p>We often say that our best marketing strategy is to just be the best we can be. Our testimonials suggest we\u2019re doing pretty well at that (<a href=\"https:\/\/www.zaharasoftware.com\/our-customers\/\">you can read those here<\/a>). If you\u2019re interested in seeing what Zahara software can do for your business, <a href=\"https:\/\/www.zaharasoftware.com\/zahara-system-contact-us\/\"><strong>give us a call or book yourself in for a demo with one of our experts<\/strong><\/a>. We\u2019d love to hear from you.<\/p>\r\n<style>\r\n\t.testbox {\r\n    border-radius: 11.725px;\r\n    background: linear-gradient(89deg, #FF5C00 0.96%, #FFB800 113.64%);\r\n    box-shadow: 2.198px 2.931px 7.548px 0px rgba(0, 0, 0, 0.10);\r\n    display: flex;\r\n    padding: 11px 14px;\r\n    color: #fff;\r\n    align-items: center;\r\n    justify-content: center;\r\n}\r\n\t.ft18 {\r\n\t\tfont-size:18px!important;\r\n\t\tfont-weight: 400!important;\r\n\t}\r\n<\/style>\r\n<div class=\"testbox ft18 mt60 mb60\"><h2 class=\"pl10 pr20 mt10 mr20 fw300 ft18 text-center text-white\"><span class=\"ez-toc-section\" id=\"let_us_guide_you_through_zaharas_ap_automation\"><\/span>Let us guide you through Zahara&#8217;s AP Automation<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n  <a class=\"btn btn-solid-blue ft18\" href=\"https:\/\/www.zaharasoftware.com\/book-a-demo\/\" role=\"button\" title=\"Speak to an expert\" target=\"new\">30 min demo<\/a>\r\n<\/div>","protected":false},"excerpt":{"rendered":"<p>No matter the size of your business, you survive by the size of your bottom line. Keeping it in check can therefore be the key to success, especially when you\u2019re growing fast and everyone\u2019s eyes are on bottom line\u2019s glamorous sister: profit. Perhaps you\u2019ve already done the smart thing and turned to AP Automation to &hellip; <a href=\"https:\/\/www.zaharasoftware.com\/purchase-orders\/healthy-po-system\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What Does a Healthy PO System Looks Like?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":88683,"featured_media":6953,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":35,"footnotes":""},"categories":[711],"tags":[],"class_list":["post-6952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-purchase-orders"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Does a Healthy PO System Looks Like?<\/title>\n<meta name=\"description\" content=\"Unlock the benefits 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