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Purchase order management software. What is it, and which one is best for your business?

07 Nov, 2022 | Business Tips

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A purchase management system is a cluster of hardware, software, and firmware that allows a business organization to make a sale and receive payment from customers. Every step from product listing to receiving the sale amount in your bank account is included in the purchase management system. Contemporary purchase order systems are automated and provide a range of services, including inventory management, information analysis, and forecast.


The argument for automating purchase order management

In today’s world where everything is automated, it makes perfect sense to do so for purchase orders. When purchase order management is automated, there’s less chance of an error being made and practically no chance of a company running out of stock. Automated systems track stock 24/7. They know where everything is at all times, and they are on top of stock levels. If an item does run low, the system is programmed to recognize the fact and order more. As for the purchase orders, because the system tracks those, an alert can be given if the vendor misses a delivery date. With all these oversight measures in place, stockouts or assembly-line stoppages become a thing of the past. Imagine what a positive effect that can have on your bottom line.

Automating purchase order management gives you:

A quicker system

If you think an automated system is faster than a manual one, you’re correct. For purchase order management specifically, everything is sped up. There’s no need to wait until an employee notices that a particular bin is running out of stock; the system is programmed to know when it falls below a predetermined amount instantly and can issue a purchase order  for more. That purchase order is then sent to the vendor online, reducing time lapses even more. And because the system tracks the purchase orders it sends out, any delays on the vendor’s side will be known by the buyer right away.

More efficiency

Automation reduces human errors. By using software to carry out the tasks of issuing and tracking purchase orders, employees are freed up for other, more profitable areas – like, maybe, researching new products for the company. The benefit is, in a word, efficiency.

Total visibility

An automated system allows management to see everything that’s happening, at every point in the process, in real time with a few clicks on their keyboards. Glitches or problems in the system can be spotted in good time and corrected without delay.

Better control

Because the purchase orders that are stored and tracked by an automated system can be accessed effortlessly at any time, it’s easy to monitor vendors and verify that they’re adhering to their end of the transaction. This goes from keeping promised delivery dates to ensuring that the order is correct when it’s received. Sometimes, this ability to keep tabs on vendors can translate into an advantage: If the vendor doesn’t keep to the agreed-upon deal in some way, for instance, it could be used as leverage to renegotiate some of the terms.


A cloud-based purchase order management system can be accessed from anywhere in the world with an Internet connection, on any device, by anyone who has permission to do so. It means that a manager can continue working without having to be physically in the office.


Internet security protocols mean that online information about a company’s POs can only be accessed by those who have been given permission to do so. POs are directly related to a company’s finances, so automating them is a way of adding another layer of protection to your business.


How to choose the right purchase order management software

When it comes to purchase order management software, there are a lot of options to choose from. We’ve listed the criteria you should use when deciding which one is best for your business below.

Current needs

Purchase order management software can offer a whole range of features, and it could be that they won’t all be needed by your particular company. Consider the size of your company and the areas in which your organization can make the best use of the software when making your decision. Choose a system that has all the functions you need and none that you don’t.

Ease of use

Whatever you choose should be user-friendly. If the system is complex and difficult to learn, your employees will have a hard time picking it up, will make mistakes on it, and might not even use it. Your system should be easy to navigate and intuitive. Whatever software you decide on should also be easy to install.

Compatibility with your current computer network

If the purchase order management software you buy won’t integrate into the computer network you already have, it’s useless. You should also make sure that the new software won’t interfere with any other systems in your network or prevent them from working properly.

You can get inventory management software that incorporates purchase order management.   DEAR systems is one of them. With a comprehensive system, every process around inventory is covered, and there’s no need to invest in anything else.

Customer support

When you’re looking at software, make sure that the company selling it to you offers customer support. You’ll want to be assured that if anything goes wrong, or if there’s an issue navigating the system, you have backup you can rely on to fix it and walk you through it.

It’s not unusual for vulnerabilities to open up in software down the line, and a good developer will offer patches to overcome them. Verify that the company you get your purchase order management software from will provide support.


It’s not the cost per se, it’s whether the price being asked is worth it for your business. There’s no point in paying top dollar for a system that has bells and whistles you don’t even need if your company is small. Check that you’re just getting what you need to fill your company’s needs, and do comparisons to make sure you’re paying a good price.


Summing up

The larger a business gets, the more value purchase order management software has for it. Automation takes concern about purchase order management off the table, preventing costly mistakes like duplicate orders, incorrect orders, and over/under stocking, while keeping oversight on delivery schedules. All of which guarantees you always have enough of the right stock on hand. Also known as procurement software, it’s a vital addition to any company that issues purchase orders, whatever way you look at it.

DEAR systems inventory management software incorporates purchase order management software, so you only need to have one all-encompassing software. We have experts standing by, ready to fill you in on anything you need to know. Why not call and ask them to give you a demo today?

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