Purchase Order Analytics

You can understand about Purchase Order Analytics

Purchase order analytics helps to analyze your material purchases and others with business insights effective for decision-making like identifying purchase order status, frequently ordered materials, preferred vendors and purchase order value, and other companies’ day-to-day purchasing activities.

The need for purchase order analytics has developed from organizations' desire to get a consolidated view of their process of procurement and spending.

Purchase Order Analytics is designed to present below KPIs and Insights

KPI	Insights
Total Purchased Orders	This metric provides insight into the total number of purchase orders placed within a specific period.
No. of Materials ordered	This metric lets you know the no. of materials ordered for the selected range and base period.
Total Purchase Order value	Metric to understand total spending on inventory for the selected range and base period.
Total Billed	Metric to understand the total billed amount for the selected range and base period.
Top 5 Frequently Ordered Material(s) and its order value	This KPI lets you know which items are commonly ordered within the specified timeframe and base period
Purchase Orders by Status	It will help to know the status of the purchase order i.e., on your purchase orders, how many orders are accepted, how many orders are pending, and how many are billed.
Purchase Orders over Time and its Order Value	Metric to understand the money spent on the inventory for the selected date period. Total cost by month based on the selected date range and base period.
Top 5 Preferred Vendors by Order Value	This bar chart is used to visualize the top 5 vendors by order value.
Purchase Order Summary	Provides you with a list of items that are purchased. Listed with informative fields like the name of the product, material, vendor, PO status, created on, unit cost, and order value.
Materials Ordered	A detailed metrics report helps you to understand your purchased materials.

Filters

Using filters you can analyze by applying various search criteria, here are the available filters

Purchase Order Name → Vendor → Material → Purchase Order Status

Importance of Purchase Order Analytics & Benefits

Manage the company’s day-to-day purchasing activities and ensure that all purchasing
Managing purchase orders and comparing deliveries with purchase orders to identify discrepancies
Signing and reviewing purchasing agreements with vendors, monitoring their performance, and renegotiating contracts
Planning and overseeing the work of Purchasing Agents
Establishing guidelines on how often the company gets price quotes for items, the number of bids to accept, and which vendors to consider
Propose improvements to the current purchasing system that will improve vendor relationships and lower the cost of doing business
Assist in developing more effective invoicing and collecting processes
Using quarterly and annual data to determine purchasing needs and performing inventory management

Top 6 reasons why you would need Purchase Order Analytics for your Organization

Spend Analysis: Purchase order data can be used to analyze spending across various categories and departments. This analysis can help identify areas of potential cost savings or opportunities for negotiation with vendors.
Purchase Order Processing Time: Purchase order data can be analyzed to evaluate the time it takes to process purchase orders. This analysis can help identify bottlenecks in the procurement process and areas for process improvement.
Vendor Performance: Purchase order data can be analyzed to evaluate vendor performance. For example, data such as delivery times, pricing, quality of products/services, and compliance with purchase orders can be used to assess vendor performance.
Budget Tracking: Purchase order data can be used to track spending against budgets. This analysis can help identify areas where spending is over budget and where adjustments need to be made.
Compliance: Purchase order data can be analyzed to ensure compliance with internal policies and external regulations. For example, analysis of purchase order data can help identify instances of non-compliance with procurement policies, such as unauthorized purchases or purchases that exceed approved spending limits.
Inventory Management: Purchase order data can be used to track inventory levels and ensure that inventory levels are maintained at optimal levels. This analysis can help identify areas where inventory levels are too high or too low and where adjustments need to be made.