Purchase Order Creation Best Practices

Step 1: Leverage Technology to build your system foundation and capabilities

🗸 Deploy a Materials Management Information System (MMIS) built for healthcare organizations

– Healthcare specific expertise will help bridge the continuum-of-care and give you the features needed for contracting and price management, item management, reporting and analytics

Step 2: Create an electronic purchase order for everything

🗸 Capture your spend, build visibility and improve reporting on your purchasing

– Include all medical-surgical, capital, maintenance and agreements for services

– Exclude utilities and travel & entertainment expenses

Step 3: Build an approved product formulary

🗸 Take control of what’s being purchased – whether your ordering is centralized or spread among a wide variety of facilities and locations

🗸 Creating an approved, standardized formulary helps ensure

– Better contract and pricing negotiation

– Quality standards

– Spend and product consistency

– Visibility to overall ordering and spend

– A streamlined end-user experience

Step 4: Maximize contract performance

🗸 Managing all of your spend through purchase orders will help achieve alignment with available contracts

🗸 Ensure right price, right contract is utilized

Step 5: Target the highest possible EDI rate for greatest automation

🗸 You’ll get better visibility to information when you have more data captured by your systems and better reporting tools

🗸 Establish your purchase order “food chain”


– Email

– Fax

– Phone orders

Step 6: Set up users with proper security, roles and responsibilities


Step 7: Create a process to make and approve change to purchase orders


Step 8: Build your GL classification coding

🗸 Include cost center and ledger numbers

🗸 Gain access to richer spend data by classifying spend by your budget codes

Step 9: Track returns

🗸 Create a return purchase order

🗸 Track return of the item to vendor

🗸 Ensure appropriately credited

Step 10: Measure vendor performance

🗸 Track on time shipment rates

🗸 Backorder and fill rates

🗸 EDI Capabilities

– Pick the right vendors! You’re looking for the right products and prices but also – the ability to send electronic Order Confirmations, Advance Ship Notices and Invoices for better matching and reporting

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