The importance of efficient purchase order management

Effectively managing purchase orders is a critical component of any business with vendor relationships. And yet, according to the founder & COO of Procurify, Kenneth Loi:

“Many organizations unwisely forego purchase orders because they perceive the paperwork to be a hassle that slows things down.”

He’s right. Paperwork is a hassle and does slow things down. However, this is not a good enough reason to forego purchase orders, hence the word “unwisely”.

From creating a requisition to gaining approval and receiving an invoice from the vendor, there are up to 7 documents involved in the purchasing cycle. That is a lot to keep track of for a single purchase.

And this only gets more complex as a business grows.

Maintaining a paper-based system at the enterprise level is virtually impossible. For smaller companies, it’s do-able, just incredibly inefficient.

The frustration and inefficiency that comes with managing piles of paperwork is no longer an unavoidable obstacle to overcome. By establishing an automated purchase order workflow, you can centralize documentation, seamlessly track progress in real-time, and shorten purchasing cycles.

Gone are the days where signing contracts involved figuring out how to connect to a printer, scanner, or photocopier.

And don’t get me started on fax machines.

Now we live in a glorious new world of rapid digital signature workflows.

There are many kinds of digital signatures. Some may think of the high-tech encrypted keys people like Julian Assange have used to prove whether messages came from them or not.

But let’s be honest, outside of our international secret agent daydreaming we’re not likely to need to use those. What we need is the simple act of being able to add our signature on to digital documents with the fewest number of clicks possible.

Those interested in soccer may remember the high profile signing of David de Gea by Spanish giant Real Madrid from Manchester United. Or, actually, you won’t remember it. Because it didn’t happen. The documents were to be sent in the last moments of the transfer window, and the whole multi-multi-million dollar deal fell through due to a broken fax machine.

Digital solutions to contract workflows are important.

That’s why in this Process Street article we’re going to look at:

• The 5 best digital signature tools
• Digital signature integrations you can use today
• How to connect digital signatures with the workflows in your business

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Processes are all the rage right now, and we’re very pleased to be leading the charge in making processes agile and actionable for organizations of all shapes and sizes.

We’ve written countless pieces about creating a process, writing standard operating procedures, or building business systems.

But sometimes we’re guilty of assuming that having a process automatically makes something organized. It doesn’t.

If you’re a solopreneur or working in a startup, managing processes is fairly easy. You have a limited number and you can easily scroll through to find the one you need when you need it.

But what about large organizations? Companies where people on different teams are in different countries? Businesses where different departments speak and operate in different languages?

How can we manage processes on such a large scale, and what does that tell us about managing processes for small businesses looking to scale?

This is where a process library comes in.

In this Process Street article, we’ll look at:

• What is a process library?
• Why you should build a process library for your business
• Determine your information architecture before building your library
• How you can build a process library in Process Street
• Harnessing the power of Process Street’s templates!

Or, if you’ve just come for the templates, grab them below:

• Process Library Checklist
• The Process for Optimizing a Process

Let’s get started!

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Modern business is a fast paced game and there are always new ways you can discover to improve your operations and output.

One of the easiest and simplest ways to improve the day to day running of your business is to supply your team with better tools.

With the array of modern SaaS products available on the market there are specialized tools for a host of use cases.

We use Close.io for our sales team, Intercom for customer support, and Process Street for our business process management throughout the company.

But if you’re a department within a larger company, or a team within a department, how do you convince top management and finance to sign off on a new software product to boost your team’s performance?

In this article, we’re going to give you a step by step guide of how to make that happen. Including:

• What is a purchase requisition?
• The difficulty of bureaucracy
• 3 important factors to convince finance
• How to write a proposal for a new software purchase requisition
• Create or improve a purchase requisition process

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Writing perfect processes is a dream all Process Street users share.

But a perfect process isn’t necessarily a process where all the steps work perfectly all the way through.

In real life, processes come up against external forces and unforeseen circumstances. A perfect process doesn’t have to predict all these external influences in advance; it needs to be able to adapt to them in real time as they arise.

Fortunately, there’s a concept for this: Process Flexibility.

Process flexibility helps keep our processes working even when everything else is going wrong.

In this article, we’re going to outline what process flexibility is and the main approaches to managing it:

• What is process flexibility?
• What are the main approaches to process flexibility?
• Flexibility by design
• Flexibility by deviation
• Flexibility by underspecification
• Flexibility by change
• How Process Street is designed for agility

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Here at Process Street, we’re always talking about the importance of workflows.

Workflows help you define what work you do and the order in which you do it.

According to the Powering Productivity report from Planview, poor processes and workflows are the number 1 cause of inefficiencies in organizations. Plus, the Chaos Theory report from Projectplace revealed project managers lost 2 hours 45 minutes each week due to poor workflows.

When you document your workflows and improve them, you optimize your work. This results in better work done more quickly.

It’s one of the simplest ways to improve the performance of your own work, or that of an organization. From basic workflows with only a couple of steps to company wide workflows with multiple stakeholders and variables.

This principle remains true in countless use cases and industries but is most powerful in areas where work benefits from standardized practices.

This brings us to an area of business where standardization is a true sign of quality: accounting.

Effective accounting practices require a strong understanding of how information flows throughout your business.

In this article, we’re going to look at:

• What is the accounting cycle?
• What is a workflow?
• How to construct processes for your accounting activities
• 11 accounting processes you can try today

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We always seem to be caught up in a never-ending mission to make our businesses better.

You have to ride out crises, fight through external problems, and still improve your performance week on week, quarter on quarter, year on year.

So how do we approach this improvement to get the most from it?

The key is about making improvement part of the daily process.

This approach falls under the umbrella of continuous improvement; what Toyota call Kaizen.

This is the art of taking a million steps forward. Compounding every success and safeguarding against every failure.

In this Process Street article, we’ll look at:

• Why Kaizen is important
• What are the other Toyota Production System concepts?
• Things to consider when implementing Kaizen.
• How Samsung use Kaizen selectively to optimize production

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Finding ways to improve processes within your organization can be tough.

There always seems to be so many things to measure and so many variables to consider.

Where do you start? How do you determine what’s good? Who takes responsibility for improvement?

Fortunately, you don’t have to go in blind.

There are loads of approaches you can take to process improvement, but one of the key techniques used by some of the world’s top companies is Six Sigma.

The Six Sigma school of thought is all about finding the right focus and tightening up processes around that goal. The end result should be the reduction of defects from a process. This saves resources, time, effort, and most of all money!

In this Process Street article, we’re going to give you an intro into Six Sigma while linking off to resources for you to explore deeper.

We’ll investigate the key Six Sigma principles which can shape and direct process improvement in your business.

The core Six Sigma principles

The 7 key Six Sigma principles we’ll cover are:

• Always focus on the customer
• Understand how work really happens
• Make your processes flow smoothly
• Reduce waste and concentrate on value
• Stop defects through removing variation
• Get buy-in from the team through collaboration
• Make your efforts systematic and scientific

You could categorize these as lean Six Sigma if you want to as well.

Given the evolving nature of the different schools of business process improvement, there will always likely be some disagreement over what the specific principles are.

For this reason, I feel it’s important to include the various competing principles even if some other lists might look at only 5 or 6 principles.

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As you’ll have noticed when you phone call centers, visit the bank, or deal with the government in any capacity, bureaucracy can make organizations slow and frustrating to deal with.

Endless forms and complex layers of approval impact a company’s services along with the morale of its employees. It can leave organizations unable to adapt to new market pressures or external threats.

The UK Home Office, during the Windrush Scandal, ended up wrongly deporting many people who came to Britain after the Second World War from the Caribbean. It was exposed that these people were being wrongly deported yet deportations and other negative effects continued, as illustrated by The Guardian. The organization failed to respond adequately, and a scandal was born.

Despite all this, large organizations in our society – whether they’re governments or big business – aren’t just going to go away. Instead they need to find ways to adapt and improve while retaining the benefits which pushed them to develop complex bureaucratic structures in the first place.

The big question is: how do you manage operations within a bureaucratic organization so that it can run with the agility of a startup?

In this Process Street article, we’ll explore:

• When, how, and why bureaucratic organizations experience slow movement
• The failures of large organizations to achieve efficiency
• 4 key examples of big bodies trying to break free from the problem
• Our important takeaways for how you can maintain agility and efficiency in a large organization

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A book about disasters, human error and a simple tool that could well be the answer

Surely we don’t need any more bureaucracy, do we? Writer and surgeon Atul Gawande says yes, in fact we do. Box-checking and form-filling are often seen as the direct opposites of efficiency, but how many skyscrapers just tumble down out of the blue? Not very many, and The Checklist Manifesto explains why. It all comes down to recognizing that checklists are a powerful weapon in the fight against human error. In a series of anecdotes/case studies spanning from Gawande’s familiar operating theater to the secretive world of venture capitalism, the author makes rock-solid arguments in quick succession about why we all need more checklists in our lives. But not just any old checklists…

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