8 Common Purchase Order System Mistakes & How to Fix Them

A well-structured purchase order (PO) management system is essential for food suppliers to streamline procurement, ensure cost control, and maintain compliance with food safety regulations. However, many businesses encounter challenges during implementation, leading to inefficiencies, errors, and financial losses.

This article outlines key mistakes food suppliers should avoid when adopting a PO management system and provides clear, actionable solutions to optimise procurement processes.

1. Failing to Define Clear Objectives

Many food suppliers implement a PO system without a clear understanding of what they need it to achieve. This lack of direction leads to inefficiencies and misalignment with business operations.

Problems That Arise Without Clear Objectives:

• Inconsistent Workflows – Different teams follow varied processes, leading to confusion and inefficiencies.
• Lack of Key Performance Indicators (KPIs) – Without measurable goals, businesses struggle to track success and identify areas for improvement.
• Unnecessary System Features – Investing in features that don’t align with business needs increases costs without adding value.
  

Solution: Define SMART Goals

Before selecting or implementing a PO system, it is essential to set clear objectives based on specific business needs. Organisations can use the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework:

• Specific: Clearly define what the system should accomplish, such as reducing purchase approval times.
  
• Measurable: Identify metrics to track success, such as reducing procurement errors by a certain percentage.
  
• Achievable: Ensure the goal is realistic based on available resources.
  
• Relevant: Align the system’s features with business priorities.
  
• Time-bound: Set deadlines for implementation and performance reviews.
  

For example, if the goal is to enhance procurement efficiency, businesses should seek a system that automates approvals and tracks supplier performance rather than relying on manual processing.

Best Purchase Order Management Systems for Food Suppliers

2. Overlooking User-Friendly Software

Many food suppliers implement a PO system without considering usability, leading to inefficiencies and costly mistakes. If employees find the system difficult to navigate, they may avoid using it or revert to manual methods.

Problems That Arise from Poor Usability:

• Employee Frustration & Delays – Staff struggle to learn the system, slowing down order processing.
• Increased Errors – Complex interfaces lead to mistakes, such as misentered quantities, which can result in overstocking or shortages of perishable goods.
• Manual Workarounds – Employees may bypass the system, leading to inconsistent record-keeping and inefficiencies.

Solution: Choose an Intuitive System

• User-Friendly Interface – Opt for a system with intuitive navigation to reduce training time.
• Mobile Accessibility – Allow staff to manage purchase orders remotely from kitchens, warehouses, or delivery sites.
• Usability Testing – Involve employees in testing before implementation to identify potential challenges.

Open Pantry offers an intuitive interface, real-time tracking, and automated workflows designed to streamline procurement processes for food suppliers.

3. Ignoring Integration with Existing Systems

A PO system must work seamlessly with existing software to maintain efficiency and accuracy across operations. Without proper integration, businesses face data silos, errors, and operational bottlenecks.

Systems That Require Integration:

• Inventory Management – Prevents overstocking or shortages by automatically updating stock levels.
• Accounting Software – Ensures accurate financial reporting and cost tracking.
• Enterprise Resource Planning (ERP) – Provides a unified view of procurement, finances, and operations.
  

Why Linking Your PO System with ERP is a Game-Changer

Problems When Systems Do Not Integrate:

• Manual Data Entry – Employees must input the same information across multiple systems, increasing workload and the risk of errors.
• Inconsistent Records – Discrepancies between systems lead to confusion and mismatched financial reports.
• Delayed Decision-Making – Lack of real-time data makes it harder to respond quickly to supply chain changes.
  

Solution: Prioritise System Integration

• Select a PO System with API Capabilities – Look for built-in integrations with accounting, inventory, and ERP platforms.
• Work with IT Specialists – Ensure smooth data synchronisation and troubleshoot potential compatibility issues.
• Leverage Middleware Solutions – If direct integration isn't possible, middleware can act as a bridge between systems.
  
  

4. Neglecting Proper Employee Training

Even the most advanced PO system will fail if employees do not know how to use it effectively. Many food suppliers underestimate the importance of comprehensive training, leading to inefficiencies and resistance to adoption.

Problems Due to Lack of Training:

• Order Processing Errors – Employees unfamiliar with the system may enter incorrect quantities or select the wrong suppliers.
• Operational Delays – Teams struggle to navigate the system, slowing down procurement and disrupting supply chains.
• User Resistance – Some employees may avoid using the system altogether, reverting to manual processes and undermining its benefits.

Solution: Provide Comprehensive Training

• Offer Step-by-Step Training – Conduct structured sessions to guide employees through key functions.
• Provide Quick-Reference Materials – Develop manuals, video tutorials, and FAQs for easy access to information.
• Assign Support Personnel – Designate team members or IT specialists to assist employees during the transition.
• Implement a Trial Period – Allow employees to test the system in a controlled environment before full implementation to build confidence and familiarity.

Wholesale Inventory Tracking: 5 Key Tips to Improve Accuracy

5. Failing to Document Procurement Processes

Without clearly documented procedures, employees may misinterpret their roles, leading to errors and inefficiencies. A lack of standardisation can result in inconsistent ordering practices, miscommunication, and compliance risks.

Consequences of Poor Documentation:

• Miscommunication & Errors – Incorrect or duplicate orders may occur due to unclear processes.
• Onboarding Challenges – New employees struggle to understand procurement workflows, slowing down operations.
• Compliance Issues – Missing records can lead to audit failures or regulatory non-compliance.

Solution: Standardise and Document Workflows

• Establish Written Guidelines – Outline every step of the procurement process, from request to approval.
• Use Standardised Templates – Implement consistent purchase order templates to reduce errors.
• Maintain Audit Trails – Track system changes to improve accountability and ensure compliance.
  

6. Weak Vendor and Supplier Communication

Effective communication with suppliers is crucial for accurate order fulfillment and timely deliveries. Poor communication can lead to shipment errors, delays, and operational disruptions, ultimately affecting the entire supply chain.

Common Communication Issues:

• Unclear Order Specifications – Vague or missing details result in incorrect shipments.
• Lack of Updates – Suppliers may be unaware of changes, causing unexpected delivery delays.
• Poor Coordination – Missed deadlines and last-minute changes disrupt operations.

Solution: Establish Clear Communication Protocols

• Implement Vendor Portals – Provide suppliers with access to order tracking and real-time updates.
• Use Automated Notifications – Alert suppliers instantly about order changes, approvals, or expected delivery times.
• Maintain Detailed Records – Keep a history of all supplier communications to ensure accountability and resolve disputes efficiently.

Why Food Suppliers Lose Money on Inventory & How to Fix It

7. Inadequate Attention to Security and Data Privacy

A PO system contains sensitive financial and operational data that must be protected against cybersecurity threats. Failing to implement proper security measures can lead to data breaches, financial losses, and regulatory violations.

Risks of Poor Security Measures:

• Unauthorised Access – Weak security controls can result in financial fraud or data breaches.
• Lack of Encryption – Exposes critical business information to cyber threats.
• Regulatory Non-Compliance – Failing to meet data protection standards can lead to legal penalties and reputational damage.

Solution: Implement Strong Security Measures

• Use Multi-Factor Authentication (MFA) – Require additional verification steps to prevent unauthorised access.
• Encrypt Sensitive Data – Protect financial and operational information from cyber threats.
• Conduct Regular Security Audits – Identify vulnerabilities and ensure compliance with data protection regulations.
  

8. Failing to Regularly Review and Update the System

A PO system must evolve alongside the business to remain effective. As procurement processes change and technology advances, an outdated system can create inefficiencies, security risks, and operational bottlenecks.

Consequences of Outdated Systems:

• Incompatibility with New Technologies – Older systems may not integrate with modern inventory, accounting, or supplier management tools.
• Increased Inefficiencies – Outdated systems may slow down procurement workflows, leading to delays and higher operational costs.
• Security Vulnerabilities – Unsupported software may lack critical security updates, making it susceptible to cyber threats.

Solution: Conduct Regular System Audits

• Review System Performance Periodically – Assess functionality, speed, and compatibility with new tools.
• Gather Employee Feedback – Identify pain points and areas where automation or enhancements are needed.
• Ensure Compliance with Industry Standards – Stay up to date with evolving procurement regulations and cybersecurity requirements.
  

Best ERPs for Wholesale Suppliers

A well-implemented purchase order management system enhances efficiency, reduces costs, and strengthens supplier relationships. However, food suppliers must avoid common mistakes such as neglecting training, failing to integrate systems, and overlooking security measures. By defining clear objectives, prioritising user-friendly software, and maintaining regular system updates, businesses can maximise the benefits of their PO management systems.

Platforms like Open Pantry provide seamless integration, automation, and real-time tracking to optimise procurement operations for food suppliers. By investing in the right system and implementing best practices, food suppliers can improve efficiency, ensure compliance, and support long-term business growth.