Feb 24, 2022

Benefits of Having a Purchasing System

Benefits of Having a Purchasing System

Find out what are the benefits of using a purchasing system for your F&B business.

Have you ever wondered why there is always a mismatch between your purchase and delivery orders at the end of each month, and why you have missing inventories at the end of each week?

Although there are many different IT solutions available on the market, using a purchasing system would be the ideal way to address these issues as it enables seamless automation of transactions.

A reliable purchasing system should be capable of the following:

1. Getting the required approval for each purchase. 

If your purchasing system is able to get the relevant and required approval for every purchase that is made, it would make it easier for owners to delegate the work of ordering supplies to their staff or managers without having to be personally present. In addition, the system can be configured so that lower-value purchase transactions(within a certain monetary limit) can be managed by non-managerial employees, while higher-value transactions can only be dealt with by managers. Purchases that are substantially high in value can also be made such that they will require the owner’s validation.  

A good purchasing system should permit you to set the limits of these purchasing transactions according to your requirements.

2. Providing an estimated delivery date.

Imagine being able to receive reminders to place orders and not having to manually enter the information for each supplier every time you place an order.

Your job would be much easier if you had a purchasing system that lets you save information about your suppliers, such as the delivery date, deadline for placing orders with each provider, and the minimum order size. 

So how exactly does this work?

Whenever you place an order, the system will save the data that has been entered. According to past information and estimation, the purchasing system would then be able to inform you on things such as when to place your next order, what the minimum order quantity is, and what the estimated delivery date will be. With such a system, you will no longer have to worry about forgetting to place an order or submitting an order late!

3. Better management of partial deliveries.

A supplier might occasionally make a partial delivery for a variety of reasons. When this occurs, a good purchasing system can really help you save time! 

As soon as you key in the details of the delivery order, the purchasing system will automatically be able to recognise that it is a partial delivery, and proceed to update and save the amount owed to the supplier accordingly. In such cases, the system will be able to detect whether the amount stated in the invoice is accurate when it receives the invoice sent by the supplier. 

4. Automated reconciliation and supplier’s statement.

The best thing about having a purchasing system is that you do not have to manually match the purchase orders to the delivery orders at the end of every month! The system would handle the reconciliation because it would already have all of the essential data recorded. 

Moreover, there is no need to draft the supplier’s statement and send each supplier's statement individually. The supplier can simply log in to the system and check the statement with his own ID and password. This is extremely beneficial when it comes to saving time and reducing human errors. 

In a nutshell, a good purchasing system would be able to capture the purchasing requisite, purchase order, delivery order, and reconcile.

We understand the concerns and the challenges you face in this highly competitive food and beverage industry, which is why our team at Novitee has come up with useful solutions for your administrative and financial operating matters. If you are looking for a purchasing system for your F&B business and would like to learn more about what Novitee’s purchasing system can do to add value to your operations, get in touch with us today!