What is meant by Ordering?
"Ordering" refers to the process of formally issuing a purchase order to a supplier or service provider. This involves the creation, transmission, and tracking of order documents that detail the goods or services to be provided as well as the agreed-upon terms and conditions.
Typical Functions of Software in the Area of Ordering:
- Order Creation: Automated generation of purchase and order documents based on approved requisitions.
- Template Management: Provision and management of standard templates for orders to ensure consistency and compliance.
- Approval Workflow: Integration of approval processes to ensure orders receive the necessary authorizations before issuance.
- Supplier Communication: Automated transmission of orders to suppliers via email, EDI, or supplier portals.
- Order Tracking: Real-time monitoring of order status, including confirmation, production, shipping, and delivery.
- Change Management: Management and documentation of changes to existing orders, including updating affected documents and terms.
- Documentation and Archiving: Storage of all order documents and communications for tracking and auditing purposes.