We outline below a few ways that Purchase Management ERP can speed up your distribution company's purchase order process. Purchase Orders (POs), are documents that are sent from one business (usually from the buyer to the supplier) to request products or services. Each PO contains information such as tracking information, quantity, and pricing.
ERP Software, also known as Enterprise Resource Planning, is an integrated accounting and inventory system that includes a wide range of features like Contact Management and WMS. Tracking inventory movement from suppliers to customers is possible in the same software. Information and data can be easily shared between many departments of the business, from warehouse workers to accounting staff.
Automated vs Manual Purchase Orders
Users can also choose to manually enter purchase orders through the Purchase Order Entry Screen or to automate them. There are two ways to add products to purchase orders. The Inventory Reorder Screen and the Sales Order Screen offer both options. Users also have the option of creating a PO Template. The PO template lets a user create a Purchase order and reuse it multiple times without the need to enter the same information.
If you are likely to order the same products or quantities repeatedly, this is a great way to speed up the purchase order process. A user can also access the Purchase Order Request Screen to add products or modify an existing purchase order. Users with restricted permissions may suggest products for the purchase order, while those with permission can authorize the PO and send it to their supplier.
Inventory Reorder Screen
Arion ERP's Purchase Management System will show you what products you should order based on any existing purchase orders, backorders, or minimum order quantities you have set up. This can be done at a vendor or product level.
Factoring in Landed Costs
To help wholesale distributors understand their profitability better, it is important to track landed costs. These are the costs involved in bringing a product to your warehouse and making it sellable. Freight costs are often incurred when goods are purchased. Importers usually add duties and brokerage fees. The predefined landed costs accruals are Freight, Duty, and Brokerage.
You can also set the percentage or flat dollar amount for the calculation of landed cost factors. Below, the landed cost factor will be applied to any PO items you have determined. This allows you to add landed cost directly to the price of the goods on a purchase order, ensuring that your profitability is high.
