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PO Collaborator
Closed-loop purchase order collaboration

How can I reduce early and/or late shipment from my component suppliers? How can I ensure supplier invoices match what I actually ordered and received?

ClearOrbit's Purchase Order Collaborator (POC) allows you to begin implementing collaborative relationships with your suppliers by tackling the problem of purchase order execution management. It is a fully integrated system that provides manufacturers and distributors with reliable, low-cost sharing of information and 100% compliant labels on all outbound shipments and purchase orders to vendors.

At the core of any buyer-seller relationship is the purchase transaction. Because it is a core business process for all manufacturers and their suppliers, it is the source of effective and ineffective relationships. Significant amounts of cost and activity are associated with purchase transaction disputes and reconciliation.

Manual systems are the most typical form of supplier/customer collaboration for small suppliers, while larger suppliers commonly use Electronic Data Interchange (EDI) to automate processes. Both methods are frequently inefficient and costly for the supplier and the customer, introducing issues related to the tracking and control of information, including:

• Duplicate data entry
• Lost purchase orders
• Early shipments
• Demand change management and fulfillment capabilities
• Lack of visibility
• Reconciliation of discrepancies
• Continuous error propagations exacerbating the "bullwhip" effect
• Disconnect between the physical supply chain and financial supply chain
• Erosion of cash-to-cash lifecycle management

Purchase Order Collaborator reduces these issues by enabling the manufacturer to maintain control and visibility of the order process throughout the supply chain. This ensures orders will match shipments and decreases the confusion that is introduced to the process when orders change due to fluctuating end-user demand. Purchase Order Collaborator maintains system synchronicity and eliminates duplicate shipments, delays in supplier payments and, worst of all, unhappy customers.

Benefits of Purchase Order Collaborator
Implementing PO Collaborator leads to rapid payback from several sources:

• Improved material availability
• Reduced lead-time and variability
• Reduced EDI costs
• Complete traceability from PO to Payment in real-time
• Increased order-to-cash cycles for suppliers
• PO information on both sides is always current
• Significant reduction of inaccurate shipments, duplicate shipments and disputes
• Fast receiving time at the dock
• Only pay for what you actually ordered AND received
• Significant reduction in the cost of label compliance
• Increased implementation of Evaluated Receipt Settlement (ERS)

For manufacturers utilizing a Kanban-based replenishment system, ClearOrbit offers E-Kanban Manager (E-KM), which provides both customers and suppliers with the tools necessary to effectively manage Kanban replenishment.

Typical Savings: