10 Great Reasons Why You Should Use a Digital Purchase Order

Are you still using a paper-based purchase order system? Or are you managing the entire process using spreadsheets? 

If so, you’re likely wasting a lot of time and money. Using workflow automation to manage your digital purchase order system is a much more efficient way to manage your orders.

Below, we discuss the benefits of using a digital purchase order system.

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A look at the purchase order process

The procurement process includes orders, approvals, dispatch, deliveries, invoices, budgeting, contracts management and quality control. The process usually begins when a requisitioner creates a request for goods or services.

The typical process flow is as follows:

  • First, the requisitioner creates a purchase order
  • The purchasing officer then sends out multiple requests for quotation (RFQ)
  • A procurement team or individual analyzes and selects a vendor
  • The company negotiates a contract and sends out a purchasing order
  • The vendor delivers the goods or services
  • The purchasing department receives and checks the invoice
  • The invoice is authorized, and the vendor paid
  • A record is maintained

Clearly, it can be time-consuming and difficult to manage. 

With a paper-based or spreadsheet system, you have to keep track of all the different orders yourself. This can lead to errors and delays in processing orders, especially in an environment where you deal with multiple orders daily. 

Whereas, a digital purchase order system can help you streamline the process. With this type of system, you can easily track your orders and ensure that they are processed quickly and efficiently. 

▶️  Watch our explainer video: Learn how to build a digital purchase order system using your intranet!

What is a digital purchase order?

A digital purchase order (PO) is an electronic document that authorizes a transaction between a buyer and a seller. It contains the same information as a paper PO, such as description of the items, quantity, price, delivery date and shipping information.

It is created using software that’s built specifically for this purpose and can be sent to the supplier via email. The supplier can then confirm the order and send an electronic invoice. 

This entire process can be completed without any paper documents exchanged between the buyer and seller. 

There are many benefits of using a digital purchase order system. 

Here are ten reasons you should switch from paper to digital.

Faster processing of orders

With a digital purchase order system, you can quickly and easily send orders to suppliers. This means that your orders will be processed faster, saving you both time and money.

Eliminates errors

Paper-based systems and spreadsheets are prone to inaccuracies, human errors, and inconsistent buying decisions. With a digital system, you can avoid mistakes such as incorrect prices or quantities.

Improved tracking

It can be difficult to track transactions and purchase records using paper documents and spreadsheets. With a digital system, you can easily track your orders and invoices and use in-built analytics tools to visualize your transactions. This allows you to stay on top of your inventory and ensure that you receive the goods or services that you need on time.

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Reduced costs

A digital purchase order system can help you save money by reducing the amount of paper and postage needed. In addition, it is also a great way to control costs proactively. 

For example:

  • You can analyze the purchase request and determine whether the purchase is truly necessary.
  • You have greater control over purchases to better sync your cash flow and financial reserves.
  • You can easily ensure that the purchase request has been authorized at the proper level in the company.

Greater security

A digital purchase order system offers greater security than a paper-based system. With paper documents, there is always the risk of them being lost or stolen. With a digital system, your data is stored securely and is only accessible by authorized users.

Improved communication

A digital purchase order system can help improve communication between you and your suppliers. For example, you can quickly send messages to suppliers regarding changes in the order. In addition, you can also track when the supplier acknowledges the order and when it has been shipped.

achieving goals and efficiency with digital purchase orders

(Image source: claromentis.com)

Better collaboration

A digital purchase order system allows for better collaboration between buyers and sellers. With this type of system, both parties have access to the same information, making it easier to resolve any issues, quickly.


A paperless purchase order system is environmentally friendly as it reduces the amount of paper used. This can help reduce your company’s carbon footprint.

Unlock productivity

For most businesses, time is a precious resource. There are never enough hours in the day to complete everything and processing POs manually is both tedious and time-consuming. Companies are estimated to lose 20 to 30 percent of their revenue annually due to such inefficiencies.

strengthen stakeholder relationships with digital purchase orders

(Image source: Avitusgroup.com)

Consider how much more time your team can spend on vital activities like planning and executing rather than doing paperwork, documentation and manual examination

Greater flexibility

A digital purchase order system offers greater flexibility than a paper-based system. With this type of system, you can easily make changes to orders without having to reprint documents. In addition, you can also access your data from anywhere, at any time.

Final thoughts on digital purchase orders

It is evident that there are many benefits to using a digital purchase order system. Not only does it save time and money, but it also offers greater security and flexibility. 

With so many advantages, it’s no wonder more businesses are making the switch from paper-based systems and spreadsheets to digital purchase order software. 

Free up your teams’ time from manual, repetitive digital purchase orders tasks and improve your data accuracy with our powerful and flexible workflow automation software and digital forms. 

Our form builder enables you to transform paperwork into online forms quickly, whilst our automation tools ensure that each business process moves forward smoothly and efficiently, increasing productivity. 



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