Download the expert's guide to document automation for Digital Purchase Order

Download Buyer's Guide to AP Automation

Check out OCR API, Invoice automation, Passport OCR, AP Automation Solution, Receipt OCR, License OCR Solution, or start your free trial by clicking below!


Do you need to purchase your business but don't know where to start?

When it comes to business, there are many different ways to conduct transactions. One popular way is through the use of purchase orders.

In this blog post, we will dispel any myths and give you a comprehensive guide on everything you need to know about digital purchase orders.

So, whether you're an existing business looking to make the switch or a new business exploring your options, this guide is for you.

So, without further ado, let’s get started!


What is a Digital Purchase Order?

A digital purchase order, or DPO, is an electronic document that authorises a buyer to purchase goods or services from a seller.

The DPO can be generated manually or through an automated system, and it typically includes the same information as a traditional paper purchase order.


[Exclusive Webinar] Learn how to automate purchase orders using automated workflows in 30 minutes. Drive 5X ROI, reduce costs by $50k+ and improve your metrics.


7 Advantages of using Digital Purchase Order

DPOs offer several advantages over paper-based purchase orders. For one, they're much easier to track and manage since all the relevant information is stored electronically.

This can help businesses keep better tabs on their spending and avoid duplicate orders.

Accurate than paper alternatives

DPOs also tend to be more accurate than paper DPOs, since there's less room for human error when inputting data into an electronic system.

Can be sent electronically

Another advantage of DPOs is that they can be created and sent electronically, saving a lot of time compared to the traditional paper purchase order process.

Buyers can simply fill out an online form or use software to generate a DPO, which can then be emailed or transmitted electronically to the seller.

Easy to manage

They're easier to track and manage, more accurate, and faster to create and send. As businesses increasingly move towards digital operations, DPOs will likely become the norm for processing purchase orders.

Enhanced Accountability

Digital Purchase orders are tracked digitally. The software collects the login information of the person who makes all the changes. And therefore, as a company, you will always know who made the last changes or who is responsible for the spending.

Improved Spend Visibility

Mapping a company’s spend is essential as it provides an overview of the areas where the spending is happening. With an online digital purchase order system, you can keep a track of where your money is going, identify the hot spots of spending, look at the expense trends and strategize to optimize them in real-time.

Remotely Accessible

If you have an online purchase order system, everything is stored in the cloud. You can access it from anywhere and at all times. This provides a great deal of freedom to access and flexibility. You and your team can access reports and analytics from any location with just a browser and working internet!

Error Free Processes

Compared to a paper-based purchase order process, the digital purchase order system is error-free. With workflows and automated rule-based checks, the documents can be processed, edited and analyzed with the highest accuracy. With the reduction in manual data entry, you can reduce errors in purchase orders by more than 95%! Learn more

Overall, digital purchase orders offer several advantages over their paper-based counterparts.


Want to scrape data from PDF documents, convert PDF to XML or automate table extraction? Check out Nanonets' PDF scraper or PDF parser to convert PDFs to database entries!


How Does a Digital Purchase Order Differ from a Paper Purchase Order?

Digital Purchase Orders are different from paper purchase orders on multiple variables. Take a look.

Time

Manual Purchase order processing takes up a lot of time as manual data entry is involved. In the case of digital purchase orders, everything is done using automated workflows and rule-based checks. This saves a lot of time as compared to the manual purchase order.

Cost

Manual purchase order processing is costlier than DPO due to additional storage costs, more effort required from employees and a higher error rate.

Accuracy

Manual PO processing is an error-prone process as it requires humans to manually input data from documents to Excel or software. In the case of DPO, it is done automatically using OCR APIs and IDP software, which are sometimes >95% accurate.

Follow up

Manual PO requires consistent follow-ups from fellow co-workers whereas, in the case of od DPO, you can get an automatic notification in your inbox for solving issues.  

Supplier Relationships

With DPO, you can strengthen the supplier relationships with on-time payments, real-time notifications, less turnover time and on-time approvals. In the case of Manual PO processes, due to manual intervention, the supplier approvals and payments take time.

Visibility

With DPO, you get real-time visibility into the payment status. There is less communication and less transparency when you use manual payment processes.

Storage

A digital purchase order is an electronic document used to request goods or services from a supplier. While a paper purchase order is a physical document used to request goods or services from a supplier.

Accessibility

The Manual PO are stored in cabinets out of reach and not every employee can access them. With the digital PO process, every document and information is stored in the cloud which is accessible to employees remotely.  

Compliance

Manual PO is difficult to manage. Keeping a paper log of every data change is difficult. And therefore, there are high incidents of errors. In the case of DPO, the software maintains the log automatically.

The Process of Digital Purchase Order

When you want to buy something online, you have to go through a digital purchase order process. This is when the company you're buying from creates an order for you, and then you have to pay for it.

The process of digital purchase orders is becoming increasingly popular among businesses. For businesses, this can be a very efficient way to manage their inventory and make sure that they are getting the best possible prices for their products.

In addition, digital purchase orders can help businesses to keep track of their spending and ensure that they are making the most of their budget.


Want to automate repetitive manual tasks? Check our Nanonets workflow-based document processing software. Extract data from invoices, identity cards or any document on autopilot!


What are the issues with the Manual Purchase Order Process?

The manual purchase order process can be time-consuming and prone to errors. When a company uses a manual purchase order process.

However, it means that someone has to physically fill out a purchase order form for each item that needs to be ordered. This can be time-consuming, especially if the company orders a lot of different items.

It can also be easy to make mistakes when filling out the forms, which can lead to delays in getting the items that were ordered. Additionally, the manual purchase order process can be frustrating for employees who have to fill out the forms.

They may not understand all of the information that is required or how to properly fill out the form. As a result, they may end up making mistakes that slow down the ordering process.

What is an Electronic Purchase Order Process Used For?

An electronic purchase order process is used by businesses to streamline the process of ordering goods and services.

By using an electronic purchase order system, businesses can automate the ordering process and reduce the amount of time and paperwork involved.

In addition, electronic purchase orders can help to improve communication between buyers and sellers and can make it easier to track order history and progress.

As a result, electronic purchase orders can save businesses time and money and can help to improve their overall efficiency.


Want to use robotic process automation? Check out Nanonets workflow-based document processing software. No code. No hassle platform.


Steps for Setting up an Electronic Purchase Order System

Following are the major steps used in setting up an electronic purchase order system:

What is an electronic purchase order (EPO) system? How it can benefit your business?

The first step is to define the EPO deeply and understand all the aspects related to it, you must have to know the benefits and the demerits of EPO,

An electronic purchase order, or EPO, the system is a web-based platform that enables businesses to streamline their purchasing process.

By integrating with suppliers' websites, electronic purchase order systems allow businesses to create and send purchase orders electronically. This can save significant time and paper resources.

In addition, EPO systems can provide valuable insights into spending patterns and help businesses negotiate better terms with suppliers. While there is a cost associated with setting up an electronic purchase order system, the benefits can be significant for businesses of all sizes.

Research different EPO systems to find the best one for your needs

If you're in the market for an EPO system, you've got a lot of options to choose from. And with so many different features and capabilities on the market, it can be tough to know where to start.

Do you need something simple and straightforward, or are you looking for a system with all the bells and whistles? To help you make the best decision for your needs, it's important to do your research and compare different EPO systems.

Here are a few things to keep in mind as you're shopping around.

  • Think about what features are most important to you. Are you looking for an all-in-one solution that includes an electronic purchase order server and client software? Or would you prefer a more customizable system that allows you to add on only the features you need? There's no right or wrong answer here - it all comes down to what will work best for your organization.
  • Take a look at the different pricing models available. Some electronic digital purchase order systems are offered as a subscription service, while others require a one-time purchase. Again, there's no wrong answer here - it all depends on your budget and preferences.
  • Consider the support options offered by each provider.

Set up the EPO system in your business, following the manufacturer's instructions

Setting up the EPO system in your business is a pretty straightforward process, especially if you follow the manufacturer's instructions to the letter.

First, you'll need to position the electronic/ digital purchase order console in a central location within your business premises - somewhere that's easily accessible for all employees.

Once the console is in place, you'll need to connect it to your business's main power supply and then activate it using the included key fob.

After that, you'll need to set up the electronic purchase order sensors around your business premises, making sure to place them in areas where they can pick up any potential intruders.

Finally, it's a good idea to test the system regularly to ensure that it's working properly and that your employees know how to use it effectively.

Train employees on how to use the electronic purchase order system

The EPO system can be a powerful tool for managing projects and tasks, but it can also be daunting for employees who are not familiar with its many features.

To ensure that employees are able to make the most of the system, it is important to provide training on how to use its various features.

In addition to showing employees how to create and manage projects, training should also cover how to use the system's collaboration features, such as task assignment and messaging.

By providing comprehensive training on the EPO system, employers can help employees work more efficiently and improve project management across the organization.

Use the electronic purchase order system to streamline your purchasing process

The EPO system can be a fantastic tool if you're looking for a way to streamline your purchasing process.

With the EPO system, you can manage your inventory, track your orders, and create purchase orders all in one place.

Plus, the EPO system is easy to use and gives you the flexibility to customize your purchasing process to meet your specific needs. Best of all, the EPO system is affordable and can save you time and money in the long run.

So if you're looking for a way to simplify your purchasing process, the EPO system is a great choice.

Why should you use the Electronic purchase order process?

The electronic purchase order process is more efficient than the traditional paper-based system

In the past, businesses relied on paper-based purchase orders to keep track of inventory and manage to buy requests.

However, this system was often inefficient, as it was difficult to track purchase orders and ensure that they were accurate. In addition, paper-based purchase orders could be easily lost or misplaced.

As a result, businesses often had to spend a lot of time and resources managing their purchase orders. The electronic purchase order process is more efficient than the traditional paper-based system.

With an electronic system, businesses can track purchase orders, monitor inventory levels, and send buying requests electronically. This helps to improve accuracy and efficiency while reducing costs.

Therefore, the electronic purchase order process is a more efficient way to manage to buy requests.

It eliminates the need for manual data entry, which can lead to errors

When it comes to making purchase orders, most businesses still rely on manual data entry. This can lead to errors, as well as a lot of wasted time and effort.

An electronic purchase order (EPO) system can eliminate the need for manual data entry, providing a more efficient and accurate way to manage purchase orders. With an EPO system, all of your purchase order information can be stored electronically, making it easy to access and update as needed.

This can save you a significant amount of time and money, as well as help to reduce mistakes. In addition, an EPO system can provide you with added flexibility and control over your purchase orders.

You can set up alerts to remind you when an order needs to be placed, track your spending, and even automate the ordering process. If you're looking for a better way to manage your purchase orders, an EPO system is definitely worth considering.

You can track the progress of your orders online, and receive automated notifications when they're processed

Making an electronic purchase order is a great way to streamline your shopping process. You can track the progress of your orders online, and receive automated notifications when they're processed.

This means that you can keep tabs on your shipments without having to constantly check in with the store or company. Plus, electronic purchase orders can often be processed faster than traditional orders, so you can get your items sooner.

Whether you're ordering office supplies or groceries, an electronic purchase order can save you time and hassle.

It's easier to manage your supplier relationships and find new suppliers online

If you're looking to streamline your supplier relationships, an electronic purchase order system is the way to go. With an electronic purchase order system, you can manage all of your supplier relationships in one place.

This makes it easy to find new suppliers and get the best prices on the products and services you need. And because everything is done online, you can track your orders and payments easily.

So if you're ready to make your life simpler, an electronic purchase order system is the way to go.

You can save time and money by using automated purchasing tools

Anyone who has ever gone grocery shopping knows that it can be a time-consuming and expensive endeavor. But what if there was a way to automate the process and save both time and money?

Well, fortunately, there are a number of online tools that can do just that. By linking your credit card to an online account, you can set up recurring orders for the items you need on a regular basis.

That way, you'll never have to worry about running out of coffee or toilet paper again. And because you're not making impulse purchases, you're likely to save money as well. So if you're looking for a way to streamline your life, give automated purchasing a try.


If you work with invoices, and receipts or worry about ID verification, check out Nanonets online OCR or PDF text extractor to extract text from PDF documents for free. Click below to learn more about Nanonets Enterprise Automation Solution.


Top Features in a Digital Purchase Order System

Easy-to-use interface

Before you can worry about which features to look for in a digital purchase order system, you need to understand what a purchase order actually is.

A purchase order is simply a request from a buyer to a seller specifying the items or services they wish to buy, along with the quantities and prices. Once the seller accepts the purchase order, it becomes a binding contract.

Now that we've got that out of the way, let's take a look at some features you might want to look for in a digital purchase order system. First and foremost, you'll want an easy-to-use interface.

After all, there's no point in paying for a system that's so complicated that you can't even figure out how to use it. You'll also want to make sure that the system is customizable to fit your specific needs.

And finally, you'll want to make sure that the system is secure and compliant with all relevant regulations. With these features in mind, you'll be well on your way to finding the perfect digital purchase order system for your business.

Customizable to meet the needs of your business

A digital purchase order system can be a great asset to any business. By streamlining the process of creating and tracking purchase orders, it can save time and money.

And, because it is customizable, a digital purchase order system can be tailored to meet the specific needs of your business.

Some of the features that can be included in a digital purchase order system include the ability to create and track purchase orders, generate reports, and email or print documents.

With a digital purchase order system, you can keep better control of your inventory and expenditures, and ensure that your business is running as efficiently as possible.

Robust reporting capabilities

Any business that relies on purchase orders needs a system that can keep track of the details, from vendor information to shipping details and costs.

A digital purchase order system like ShippingEasy offers numerous features that can streamline the process and save businesses time and money. One important feature is robust reporting capabilities.

With ShippingEasy, businesses can generate reports on their purchase orders, tracking trends over time and identifying areas where they may be spending too much.

This information can be invaluable in making strategic decisions about vendor relations and inventory management.

In addition, the ability to track purchase orders can help businesses avoid costly mistakes, such as ordering too much or too little of a product. Overall, robust reporting capabilities are an essential part of any digital purchase order system.

Integrates with other software applications in your business

If you're running a business, chances are you're using a variety of different software applications to manage different aspects of your operations.

A digital purchase order system should be able to integrate with the other software applications you're using, providing a seamless workflow and enabling you to manage all of your procurement needs from one central location.

This will save you time and effort, and make it much easier to keep track of your purchases. Look for a digital purchase order system that offers integration with popular accounting, inventory, and shipping software applications.

This will ensure that your purchase orders are automatically updated in your other systems and that you can track your purchases from start to finish.

Secure and reliable data storage

In any business, it's important to keep track of your inventory, and a digital purchase order system can help you do just that.

When looking for a system, be sure to find one that offers secure and reliable data storage. This way, you can be sure that your information is safe and sound, and you won't have to worry about losing any important data.

Additionally, look for a system that is easy to use and navigate. The last thing you want is to waste time trying to figure out how to use the system; it should be intuitive and straightforward.

With a little bit of research, you should be able to find the perfect digital purchase order system for your business needs.

Low cost and easy to maintain

A digital purchase order system can be a great asset for any business. Low cost and easy to maintain, a digital purchase order system can save businesses time and money.

With a digital purchase order system, businesses can keep track of inventory, manage orders, and process payments.

In addition, a digital purchase order system can automate the ordering process, making it easier for businesses to keep track of their inventory.

With all of these features, a digital purchase order system can be a great way for businesses to save time and money.


Want to automate repetitive manual tasks? Save Time, Effort & Money while enhancing efficiency!


Common mistakes that businesses make when using an digital purchase order

Not having a purchase order process in place

One of the most common mistakes that businesses make when using an electronic purchase order system is not having a purchase order process in place.

Many businesses assume that they can simply start using the system and that everything will fall into place.

However, this is not the case. Without a well-defined purchase order process, businesses will likely find themselves with inaccurate or incomplete orders, which can lead to delays and other problems.

Furthermore, businesses need to ensure that their employees are properly trained on how to use the system. Otherwise, they will likely encounter errors and difficulties when trying to place orders.

By taking the time to develop a purchase order process and training employees on how to use the system, businesses can avoid many of the common pitfalls associated with electronic purchase orders.

Failing to get approvals for orders

It is very common for businesses to fail to get the proper approvals for orders when using an electronic purchase order system.

This can lead to situations where goods are ordered but never received, or where invoices are paid but the goods are never delivered. To avoid this, it is important to set up a system whereby all orders must be approved by a designated manager before they are processed.

This will ensure that only authorized orders are placed and that all orders are properly tracked and accounted for.

Another common mistake is failing to track purchase order numbers. This can result in duplicate orders being placed, or in missing orders when goods are delivered.

To avoid this, it is important to assign each purchase order a unique number and to track all purchase orders carefully. By following these simple tips, businesses can avoid many of the pitfalls associated with using an electronic purchase order system.

Not verifying supplier information

One common mistake that businesses make when using an electronic purchase order is not verifying supplier information. This can lead to problems such as incorrect product descriptions, delivery dates, or prices.

To avoid these problems, businesses should take the time to verify supplier information before placing an order. Another common mistake is failing to confirm receipt of the order. This can cause delays in delivery or result in the wrong items being shipped.

To avoid these problems, businesses should always confirm receipt of an electronic purchase order before sending payment. By taking these simple steps, businesses can avoid many of the pitfalls associated with using an electronic purchase order system.

Entering incorrect quantities or items

Perhaps the most common mistake businesses make when using an electronic purchase order is entering incorrect quantities or items.

This can result in either over-ordering, which can lead to wasted inventory and higher storage costs, or under-ordering, which can disrupt production and lead to lost sales. In either case, it is important to carefully review the purchase order before submitting it to avoid these costly mistakes.

Another common mistake is failing to properly track purchase orders. This can lead to duplicate orders, late deliveries, and other problems that can interfere with the smooth operation of a business.

By maintaining a well-organized system for tracking purchase orders, businesses can avoid these pitfalls and keep their operations running smoothly.

Not checking for duplicate orders

Duplicate orders are one of the most common mistakes businesses make when using an electronic purchase order system. When an order is placed, the system automatically generates a purchase order number.

However, if the order is placed again, a new purchase order number is generated. This can lead to confusion and wasted time as businesses try to track down duplicate orders. To avoid this problem, businesses should always check the purchase order number before placing an order.

If the number is already in use, the business should either cancel the order or choose a different supplier. By taking this simple step, businesses can save themselves a lot of headaches down the road.

Not reviewing invoices for accuracy

Businesses of all sizes need to be careful when using electronic purchase orders. One common mistake is not reviewing invoices for accuracy. This can lead to businesses overpaying for goods or services, which can add up over time and put a strain on the company's finances.

Another mistake is not keeping track of purchase orders. This can lead to duplicate orders, which can be both costly and confusing for everyone involved. Finally, businesses should make sure that they have a system in place for managing and approving purchase orders.

Without this, it can be easy for unauthorized purchases to be made, which can again lead to wasted money and resources. By being aware of these common mistakes, businesses can help ensure that their use of electronic purchase orders is efficient and effective.

Final Thoughts

In conclusion, a digital purchase order can save your business time and money. It is an efficient way to track and manage your purchases, and it makes ordering easier for both buyers and suppliers.

If you are not currently using a digital purchase order system, we suggest that you consider implementing one. It could be the solution your business needs to streamline its operations and improve efficiency.


Nanonets online OCR & OCR API have many interesting use cases that could optimize your business performance, save costs and boost growth. Find out how Nanonets' use cases can apply to your product.