This is done by checking the order acknowledgement you receive from your supplier after you have placed the order. This can be done in a variety of ways, from manually checking a paper order confirmation to EDI flows with varying degrees of error handling. The most advanced companies use automated EDI flows (or other forms of electronic communication). They also have a solution for automatically handling the order confirmations received by email or sometimes on paper.
Optimization of supplier flows
What we at Conrab have seen with several of our customers is that even if you use EDI flows, only a small number of the total number of suppliers go through these flows. The reason is that they are still associated with a complexity and cost that is not insignificant. If you want to be able to effectively control your entire flow of incoming order confirmations, a solution is also needed to handle what does not come as EDI. Many companies still have a largely manual process, i.e. users review the order confirmation manually and compare it with the words in the business system.
By allowing a system to automatically check order confirmations, including paper and PDF, against the purchase order in your ERP system, you have full control that you get what you ordered, when you expect it and at the right price. If there are deviations (outside your tolerance levels), they need to be handled by a user manually. The order confirmation is then sent in the system to the right user who can handle the deviation and update the purchase order automatically if it is the correct action.
Improve planning and customer satisfaction
As well as the obvious benefits of automating this process for manufacturing and delivery to your customers, it also helps to increase the level of automation of your invoice matching. A purchase order and an order confirmation may often differ, but it is rare that the order confirmation and the invoice do.
Finding deviations early leads to better planning, reduced delays, more satisfied customers and a happier and more efficient finance department. Want to know more about how Conrab can help you and your company? Feel free to contact us.