“Where’s my stuff?” -
It’s the question supply chain teams are constantly expected to answer. Increasing consumer expectations for real-time updates and on-time delivery puts immense pressure on buyers and logistics teams to have accurate purchase order status information throughout the PO’s lifecycle – from the moment a PO is created to the moment it lands in inventory. Traditional, manual processes for collecting PO status updates are slow and laborious, and fail to quickly identify exceptions and inventory risks. This article examines the importance of real-time PO tracking and exception management, and how automation technology delivers these critical supply chain updates.
Access to accurate purchase order status updates is essential to successful supply chain management, because it allows buyers to weigh current inventory levels against existing orders, projected demand, and items in transit. There are several challenges to PO status tracking to consider:
When PO statuses are provided promptly, buyers and logistics teams can identify exceptions, proactively address inventory risks, and take immediate corrective action. However, when status updates are lacking, and suppliers and transportation vendors fail to meet these standards, it can have grave consequences. Delayed POs include failure to fill customer orders, production shutdowns, and decreased revenue due to canceled orders and lost customers. Therefore, improving processes for tracking POs and identifying exceptions is crucial for today’s supply chain teams.
Real-time PO status updates are vital for identifying inventory risks and managing exceptions. Unfortunately, traditional tracking processes fail to provide the necessary details to keep up in today’s fast-paced and demanding market. Automation technologies improve operational efficiency, speed, and accuracy by converting manual tasks to digital systems. Automating PO status collection provides key solutions to get supply chain teams the information they need, with several key benefits:
Improving PO visibility to identify and manage exceptions is invaluable to a company’s success in today’s dynamic and volatile supply chain environment. By mapping existing inventory throughout the distribution network against incoming and expected purchase orders, automation allows supply chain teams to go beyond recognizing risks, and moves them to real-time corrective action. With the full range of inventory data consolidated in a single hub, teams can make informed decisions about moving SKUs between distribution centers, rerouting POs, or placing additional expedited orders to meet customer demand. Advanced data analytics can also help teams plan better over time through predictive analysis and in-depth supplier performance evaluation.
Better exception management demands real-time PO status updates and immediate inventory risk alerts. Leverage delivers the automation solution to do just that. On the front end, Leverage automates PO status collection through system integrations (ERP, API, TMS) and pre-configured outreach to vendors in their preferred channels (email, text, WhatsApp, WeChat, Slack). Leverage overlays existing SKU levels with in-progress POs and SKUs on the backend to create a customized heat map of at-risk inventory. With Leverage, supply chain teams are alerted to exceptions in real-time and given AI-powered suggestions for managing those exceptions – reducing stockouts and increasing on-time in-full customer orders.
When you partner with Leverage, you can count on having the inventory data you need when you need it. You’ll know where items are, when to expect them, and when action needs to be taken to mitigate risks and keep inventory stocked. Leverage gives your supply chain team the tools they need to drive efficiency and hit demand targets easily and seamlessly.
Contact the experts at Leverage today to learn more about how their advanced automation technology simplifies PO status collection and exception management.