A purchase order is an order specifying what is purchased, or is to be purchased. The purchase order can be created in an order management system (as part of an ERP system)
When creating a purchase order you specify the customer, delivery date and location, and more. If you have an order management system that can handle lot numbers, you can also specify which lots are included in the order. You thereby support traceability due to the documentation showing exactly wherefrom the lot is purchased.
Documents regarding a purchase order
When you create a purchase order, some documents are typically required for confirmation and transportation.
The most common documents are:
- Delivery note, specifying where the products are to be transported from and to.
- Purchase order confirmation for the supplier.
These documents will, in many order management systems, be generated automatically, based on the information entered in the system.
Order management and inventory management
Many systems for inventory management are based on order management which dictates what goes in and out of your inventory. This way, when you create a purchase order, the products will automatically be added to stock.
With tracezilla, you get a highly functioning order management system as part of an ERP system developed especially for small food companies.
Read more about order management in tracezilla.