Enhance Purchase Order Management With OrderSource
Sep 6, 2023
Written By: Matthew Bruner
Category: General | Retailers
purchase order management

Whether you view alcohol as a way to boost foot traffic into your business, enhance the customer experience, or increase your profit margins, it is crucial to have an efficient and accurate system to manage alcohol purchase orders (POs) and expenses. Selling alcohol, especially successfully, comes with no shortage of challenges. Without proper attention and PO management, there can be financial losses during the purchasing process alone.  

Some of the most common issues with ordering alcohol include:

  • Reconciling invoices with original orders to ensure accuracy
  • Tracking and applying credits directly
  • Dealing with product substitutions and incorrect deliverables
  • Identifying and resolving price discrepancies

These issues can be incredibly time-consuming, wasting essential resources that could be applied elsewhere. One way to optimize alcohol ordering is by implementing PO numbers into the process. Attaching a valid PO number to your invoice payment establishes a clear, verifiable path that helps with reconciliation. Another way to enhance purchase ordering is through an automated solution like Fintech’s OrderSource®.

What is a Purchase Order Number?

A PO number is a unique designation assigned to an alcohol purchase order. The purchase order is a written, official confirmation of a business’s intent to purchase from a distributor and includes transaction details. The PO number aids vendors and buyers in referencing orders.

Why is Using PO Numbers Important?

Purchase orders are essentially contracts that state the item, quantity, and agreed-upon price. With alcohol, these details are important when it comes to protecting margins. For example, a business can receive a quantity discount from one distributor that they may not get elsewhere. When an order is delivered, if the items don’t match what was on the agreed-upon PO, the recipient has grounds to request credits from the distributor to make things right.

A PO number helps both sides easily track orders, especially when tied to the associated invoice. This connection between the invoice and the original PO puts businesses in a better position when negotiating with the distributor.

We’ve covered some of the benefits of using PO numbers with alcohol orders before, including:

  • Tracking credits owed by the distributor
  • Offering more visibility into purchasing amounts and quantities
  • Identifying price discrepancies and ensuring accurate billing
  • Connecting the invoice back to the original order
  • Providing a comprehensive record of approved orders and purchase history
  • Maintaining pricing strategies within an alcohol product category
  • Controlling inventory investments while maintaining in-stock levels
Creating a PO Number System That Makes Sense

Implementing POs yields significant benefits for alcohol businesses. However, it can lead to time-consuming manual processes if not done correctly. With a high volume of purchase orders, manually assigning PO numbers to invoices is impractical. This is where an automated solution like OrderSource can help.

OrderSource sends all alcohol POs to the corresponding distributor electronically in a single format – no more phone calls, emails, or faxes. For a more rounded system, OrderSource connects directly with PaymentSource, Fintech’s automated alcohol invoice payment solution, to ensure a valid PO number is issued with the on-time payment. There is no need to request a PO number from the distributor.

With OrderSource, businesses can view their PO Discrepancy Report online to find order-to-payment discrepancies. No more wasting time matching POs to invoices manually.

OrderSource can help businesses take control of their alcohol purchases.

Request a demoRequest Demo today.

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