What Is PO Dispatch & Update?
PO dispatch and update refers to the processes involved in managing purchase orders from creation to completion, ensuring on-time delivery to vendors. This also includes tracking any changes until the PO is ultimately fulfilled and paid. This typically includes the following steps:
PO Dispatch
- Sending the PO: Once a PO is created and approved, it is sent to the vendor electronically or via physical mail.
- Confirming Receipt: The vendor confirms receipt of the PO, often by providing an acknowledgment or confirmation number.
PO Update
- Tracking Progress: The buyer monitors the PO’s progress, ensuring that the vendor is adhering to the agreed-upon terms and conditions.
- Making Changes: If necessary, the buyer can make changes to the PO, such as adjusting quantities, delivery dates, or prices. They can then communicate those changes to the vendor and document them.
- Resolving Issues: If any issues arise during the fulfillment process, the buyer works with the vendor to resolve them.
- Closing the PO: Once the goods or services have been received and inspected, and any necessary payments have been made, the PO is closed.
ICG’s Solutions
ICG’s PO dispatch & update solution delivers value, savings, and efficiency. The solution rapidly deploys in a centralized or remote processing environment to support smooth-running supply chains. Cloud-hosted and portal-based, ICG’s PO Dispatch & Update solution automates the delivery of purchase orders to your suppliers. It can also help with ensuring on-time delivery and that your suppliers receive, acknowledge, and respond to the purchase orders your company sends them.
The solution employs timers so that POs move through the approval process promptly. If a PO remains inactive for a set amount of time, escalating notifications go to internal and vendor contacts until a certain action occurs. In many companies, time is of the essence for vendors to fulfill a purchase order by shipping or delivering the procured product or service promptly. Failure to do so can cause downtime, additional costs, delays, and other downstream consequences for your business and your customers. Having peace of mind knowing that your suppliers have received and acknowledged your purchase order is an important first step.
In many industries, especially for specific products, services, or commodities, it is critical for a smooth-running supply chain operation that the supplier acknowledges receipt of the PO and acceptance to fulfill it. It is also critical in many scenarios to require the supplier to provide real-time updates. Vendors must communicate any departure from requested products, quantities, ship dates, ship times, methods, etc., as soon as possible and provide updated information.
Learn More
ICG’s PO dispatch & update solution is a highly configurable application that excels in ensuring on-time delivery. It also enables you to be proactive in requiring selected vendors for specific purchase orders to provide updates for critical shipments and communicate either the status quo or any deviations promptly. By taking this proactive approach, you can better manage your critical supply chains and avoid costly delays and last-minute surprises. ICG’s solution even allows the buying organization to request updates on specific line items within the PO.
Your procurement department should be aware of late deliveries, product shortages, or other conditions that impact time-sensitive operations. Keep your supply chains running smoothly and predictably by eliminating any uncertainty about your vendors paying on time.
This dynamic, cloud-hosted solution can be implemented as a module on a vendor portal or deployed as a stand-alone application. Real-time communication and transaction updates between you and your vendor 24/7. Through integration with your ERP and other supply chain systems, suppliers can provide up-to-date information that you can react to.
Contact ICG today for more information or to schedule a demo for you and your team.