Procurement department of an organization is said to impact upto 70% of the organization’s revenue. To increase the profits and to focus on building strong supplier relationships over the long term all businesses are aiming to maintain the perfect balance between buyer & supplier. For this to happen procurement teams of an organization must focus at choosing the right supplier who can fulfill their needs and honor their portion of the contract. To make this process smooth and to mark completion of the purchase cycle GRN is Issued to the supplier.
Benefits of GRN (Goods Receipt Note) for Inventory Tracking
GRN is a significant document for every purchasing company, this document remains vital record between buyer and supplier. Whenever a supplier has delivered goods this is the confirmation note they will receive from the purchaser.
- This GRN Note enables the Organization to validate the supplies quality and also to verify if it meets the various other criteria specified.
- On acceptance of the supply the goods received notes are issued by the customer to avoid differences in the future regarding the quality and quantity in the delivery.
- Accounts team can ensure faster processing, approval and payments of the GRN Having digital/electronic document.
- Helps warehouse staff to verify the goods supplied with the Purchase Orders (PO’s) and the GRNs.
- This GRN note stored in digital format supports the assesse to previous records for quantity, frequency and anything specific to the supply like delays caused, rejections made etc that need to be corrected from supplier end to improve business relationship with vendors
- GRN information when shared to all concerned departments via mail or alert notifications it saves time and helps keep adequate record for audit purposes.
- This GRN Note helps do three way matching, which in turn eliminates fake invoicing and helps ensure all incoming invoices are properly checked for before making payment.
To automate your purchase approvals and to gain visibility into your spend like never before you need to analyze and understand spending patterns. Is your organization still relying on manual GRN Practices? To get all above mentioned benefits of the GRN document you should choose to digitize the process with software application. Vendora is one such right supplier relationship management software that helps businesses to identify the problem areas and take corrective actions to improve the efficiency of supply chain management. Contact us to Know more