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6 Benefits of Purchase Order Consolidation for Your Business

Supply chain management is an industry growing at an 11% rate today. The way that you take care of your warehouse and manage your shipping and orders will help you with your company’s efficiency and productivity. 

Order consolidation is one of the best steps that you can take to make this a reality. What are some of the benefits of using this service to your advantage? We’re happy to explain. 

These tips will help you handle purchase order consolidation on your terms. 

1. Your Business Will Become More Efficient

With purchase order consolidation, you’re combining numerous orders into a single one. This means that it’ll have one purchase order number, along with all of the necessary details for each. 

When you consolidate your orders, the first thing you’ll notice is that your business immediately becomes more efficient. It’s only natural that your business will become more organized and efficient when you whittle down a few hundred orders into a single one. You lighten the load of your workforce since people won’t have to expend as much effort and energy tracking smaller orders. 

Understanding warehouses and 3PL technology will make sure that your orders get to their destinations without a problem. Creating a single purchase order also means that you’re getting a consolidated shipment, which streamlines the way you run your company and cuts down on a lot of the waste that you create. 

2. You Lower Your Costs

By making your purchase orders more efficient, you’ll also be able to reduce your company’s operational and overhead costs. Operating a consolidation warehouse lightens your expenditures so that you get a better return on investment (ROI) and are able to get a better handle on your finance. 

You’ll get to lower your holding costs, which makes your company more profitable and effective as a whole. It also reduces your monthly expenses, since you’ll get a better handle on how you send purchase orders to your regular clientele. A company that is being run better as a whole will also be more cost-effective. This lets you scale your business in a way that makes sense for you. 

3. Shipping Becomes Quicker

Your shipping time is one of the most critical pieces of the puzzle. Taking your orders from acknowledgment to sorting, to minimizing packaging time, to shipping is an art and a science that will increase customer satisfaction when you get it right. 

Today, you’re competing with companies like Amazon and third-party service apps that get products to customers’ doors ASAP. You’ll provide for your customers so that you can generate repeat business and referrals. This makes people more likely to support you long-term. 

You will have access to better shipment tracking and will be in a position to fulfill each order in a timely fashion no matter what is happening in your industry or the supply chain as a whole. 

4. It’s Easier to Manage Your Inventory

Purchase order consolidation is also helpful because you will get a better handle on your inventory. You’ll be better able to manage your inventory stocking and you’ll appreciate that your shipping becomes more sustainable. Businesses today are moving toward eco-friendliness in all regards, and are also being incentivized for doing so. 

Making your shipping process greener lowers your carbon footprint and can even open you up for tax breaks and certifications. In addition to handling your inventory better, you’ll also be better able to manage your fleet and order transportation options. 

This lowers the amount of fuel you consume, reduces costs, and ensures that your orders get from Point A to Point B in no time. 

5. You’ll Increase Your Order Accuracy

The last thing you want is to have numerous returns to process. Making mistakes can be costly, because inaccurate orders lead to more returns, more time wasted, and less trust in your company. Purchase order consolidation increases your accuracy significantly so that you’re not running into as many issues. 

The system brings in checks and balances so that you know that your orders are being handled as accurately as possible. It creates less work for your team and makes sure everyone gets to stay productive without having to double and triple check orders or go back and correct so many mistakes. 

6. It Lets You Leverage Your Buying Power

When you consolidate your resources, save money, and make better decisions, your company will also have more buying power. You’ll be able to choose the ideal vendors to work with and will get more bang for your buck with each purchase. 

Your company can become more liquid and you’ll be in a better position to leverage each opportunity that comes your way. This also helps you to strengthen your relationships within your industry and do business long-term with the companies that you trust most. 

Understanding Purchase Order Consolidation 

These tips will explain why purchase order consolidation is the way to go for your business. These six points allow you to do better business and keep your company profitable for years to come. 

Regardless of what sort of industry you’re in, make sure that you also shop for the tools and systems that allows you to put these benefits to use. We’d be happy to assist you with your storage, shipping, and logistics optimization. 

Shield Works Precision Manufacturing can help you with all of your warehouse and fulfillment needs. Take the time to contact us on our website or by calling (650)666-0050 for more information.