Purchase Orders

Why Automating Your Purchase Order System Will Save You Money

An automated purchase order system will improve your effectiveness and efficiency resulting in your business rising to the top of the construction game.


Imagine a new reality where your construction business is no longer buried under mountains of paperwork that have to be sorted through each month to manage your purchase orders. The constant maintenance of receipts, invoices and other important financial paperwork is daunting and time-consuming, to say the least. By automating your purchase order system, you will save money for your business.  

An automated purchase order system will improve your accuracy, effectiveness, and efficiency resulting in your business rising to the top of the construction game.

construction purchase order system

The cost of using a manual purchase order system

Regardless of the size of your organisation, manual purchase order systems are error-prone and riddled with inconsistencies. This creates a system where you are constantly chasing documentation to fix the inaccuracies that are happening across your business. The following are some of the major costs to a business that uses a manual purchase order system.

1. Time

Your finance staff spends a lot of time chasing paper and entering information into slow and archaic systems. These processes are repetitive and a monthly drain on the potential of your team.

2. Human errors

We all make them, but errors in any step of your financial system can end up being a giant disaster that needs to be unpicked. On top of the regular administrative requirements of maintaining your paperwork, these errors just add to the time to keep all records straight.

3. Incorrect codes and supplier information

Whether you cannot read a supplier invoice due to illegible writing or the wrong codes provided, unclear initial information can be a drain on your company’s resources. Chasing vendors or employees to verify the information just adds to the time to process your paperwork.

These are just a small sample of the clunky nature of a manual purchase order system.

automated purchase order system for construction

Benefits and savings of automated purchase order system

Once you have taken the leap of faith and upgraded to an automated purchase order system, your business will immediately see a multitude of benefits and the savings will start to roll in. 

Let’s explore these benefits and how they will impact your company’s bottom line.

1. Increased productivity

Once set up, your finance team will see an immediate impact on the amount of time required to process data. With the automated purchase order system handling the bulk of the load, your team can now take that time back and use it to focus on more strategic tasks that help grow revenue instead of manual data entry. As your business grows, you will be able to keep your team the same size. Just this cost savings alone is worth implementing this software into your company.

2. Data equals dollars

After you have switched to an automated purchase order system, you will immediately have a bird’s-eye view of all of your numbers including inventory counts for each project in your pipeline. Track budgets on an individual scale up to companywide. This data can then be used to stay within budget limits or have a clearer picture of each project's status resulting in more efficiency across the board. The longer you use an automated purchase order system, the more you will be able to plan your projects and spend ahead. Track key insights about future trends and market cycles, keeping you ahead of the competition.

3. Get remote

Provide flexibility for you and your team to approve POs while on the road in between meetings or on-site visiting a vendor. No more wasting valuable time trekking back to the office to get the administrative side of your job done. With an automated purchase order system, you are free as a bird to nail down the details while out of the office.

4. Clear audit trail

This all accumulates into a clear track record of all transactions, reports, and information about your company. Being in the construction business, keeping track of this information manually can be challenging with the number of vendors and clients dealt with regularly. With a digital purchase order system, all information is easily accessible at any time for any audit that may come your way, making getting to a resolution a breeze.

5. Happier customers

With all information about a specific project or vendor at your fingertips, it will be easier to identify any problem that arises and resolve it in record time. Both new and current customers will be happy with your accelerated processing times, and faster and clearer communications.

At first, it can feel like a big decision to make such a change from a manual system to a digital one. But once you make the change you will never look back. Staying with a manual system leaves money on the table for your business. All of these touch points begin with an automated purchase order system and end with saving you money. 

automated purchase order system

Good relationships mean success

As construction business owners we know that relationships are the key to success. Strong relationships with suppliers, vendors, and subcontractors lead to great outcomes with your customers. Great customer relationships mean repeat business and referrals. All this leads to growing and sustaining your company.

With an automated purchase order system, your construction company will rise above the rest.  So say goodbye to your paper-based manual process and embrace a new automated reality. Your relationships with your staff, vendors, and customers will only grow from here.

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