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Obstacles to improving end-to-end purchase order visibility

13 January 2023

End-to-end PO visibility is critical for a company to run smoothly and efficiently. It can reduce costs, increase profits and improve the customer experience. Various challenges come in the way of effective end-to-end PO visibility, which we will discuss here in this blog

Areas of End-to-End Purchase Order Visibility
End-to-End Purchase Order visibility

Status Tracking and Visibility

One of the biggest challenges in purchase order management is status tracking and visibility. Many suppliers, manufacturers, warehouses, and retailers are often involved in getting a product or service to the customer. This can make it difficult to track where things are at any given time and to identify potential problems.

Managing the flow of information and communication
Another challenge is managing the flow of information and communication between the different partners. This can be difficult because each partner may have their systems and processes, and there may not be a common platform or language for communication. Purchase order disruptions can also be a significant challenge. Disruption can occur at any point in the purchase order and can have a ripple effect that impacts all other partners in the final product assembly. Purchase order disruptions can be caused by several things, including financial and geopolitical risks. Purchase order management is a complex process, and many potential challenges can impact the performance of the purchase order. Limited access to information: Information about the status of individual parts in different parts of the purchase order is often not accessible by all members of the organization (e.g., the manufacturer doesn't know what part has been received). This limits their ability to respond quickly when events occur that could affect their ability to provide parts promptly...

Managing multiple systems to complete the same task
Operational delays are unavoidable when information is dispersed across various applications and tools. For example, a team may check multiple carrier systems for updates while emailing error-ridden spreadsheets.

Reconciling all of this information consumes valuable time. It also complicates procurement and supply chain tasks, resulting in significant inefficiencies that raise costs and affect on-time delivery.

Third-party logistics visibility outsourcing
In some industries, outsourcing to third-party logistics providers is unavoidable, not to mention a practical necessity for big enterprises with nationwide or even global footprints. In addition, unproductive third-party partnerships can significantly impede the overall purchase order visibility, with ripple effects throughout the enterprise. Relying on third-party assistance for logistics visibility raises issues similar to those raised in the first item above: Time-consuming and costly fragmentation. Having data points like carriers readily available in one online platform, on the other hand, vastly simplifies transportation management. The outcomes frequently speak for themselves. Because of features such as centralized data repositories, a more streamlined supply chain is both cost-effective and simple to manage.

Governance Issues
Because there is no transparency in the process, the lack of visibility into stock levels creates governance issues. The ability to manage stock levels and receipts issued is critical, and purchase order players require a complete view of stock in, stock out, invoices issued, and more. Governance across these touchpoints is crucial for a profitable business, necessitating integrated systems and a clear view of the purchase order from beginning to end.

An integrated, mobile, and cloud-based system that provides the necessary visibility across the purchase order life cycle is required to address these challenges. An ecosystem that provides full visibility to all parties, complete with real-time stock levels and online collaboration capabilities, can significantly increase efficiency. Supply chain teams can better manage their inventory, warehousing, and personnel; stock can be tracked at any point along its journey.

Furthermore, the loop can be ended to include intelligent monitoring systems to interpret the data against key performance indicators and deliver real-time actionable insight once they have this data. Structured reports can be accessed anytime, and automatic proactive alerts can be set up in case of an exception. This enables proactive business management in real-time. Data from the purchase order will also be used for predictive analytics, allowing for more agile and effective decision-making from the board.