This true story was shared with us by Sonia Blaudez, Senior Presales Consultant at SAP Concur, as the perfect example of why businesses need a purchase order (PO) system. In total, the mistake cost the manufacturer £1 million. There was no time to fix the part and redo the order before late penalties on the order kicked in. This was only discovered when a £500,000 order was quality checked and had to be dismissed because it wasn’t within the agreed guidelines. The problem is, the part wasn’t fit for purpose. They fit the part on the machine and production restarts. To get it fixed quickly, one of the operatives goes to the nearest hardware store and buys a replacement part on their credit card. One day, a part in your most important machine breaks down. You run one of the largest manufacturers in the world.
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