If you’re a lab manager or finance leader at a life sciences company, you know the challenges of managing purchase orders without a streamlined system. Juggling POs across multiple tools—or worse, spreadsheets—can feel chaotic and unproductive. A tailored PO system for life science companies can eliminate the frustration, allowing scientists to focus on groundbreaking research instead of getting caught in endless back-and-forths over purchase requests.

Meanwhile, finance teams struggle to match invoices with scattered purchase orders, leading to delays and a lack of visibility into spending.

A dedicated PO system for life sciences companies solves these problems by giving you one central place to track all purchase orders including lab supplies and CRP contracts.

From the moment a request is made to when the order is approved and matched with an invoice, everything is organized and easily accessible.

Here’s what that looks like:

• Real-time visibility into purchase orders at every stage.
• Streamlined approvals to keep things moving without delays.
• Automatic matching of invoices to purchase orders, reducing manual work.
• Budget tracking so you know exactly how much is being spent, where, and why.

With a single system, lab managers can avoid juggling multiple tools, and finance leaders can finally close the books on time without surprises. In this blog, we’re going to learn about how important a PO system for life science companies is and how you can leverage it for your business!

What Is A PO System For Life Science Companies?

A PO system for life science companies is a system that automates the end-to-end purchasing process for life science companies.

Whether purchasing lab supplies, pharmaceutical manufacturing, or purchasing CRO services, the system provides a mechanism for automating a company’s cost control process

Life science companies like pharmaceutical companies that don’t have a PO system manage the cost control process manually. I.e., a combination of spreadsheets for order tracking and emails for approvals.

Though the process works when you have less than 10 purchase orders a month, it doesn’t scale with the purchase order volume. A PO system allows you to set up a cost control process without hiring an additional headcount to manage the purchase order process.

Controllers, on the other hand, need to worry about regulatory compliance. That means compliance with purchasing policy and ensuring you only pay approved invoices.

Without an automated process, invoice approval is highly manual and requires continuous follow-up with stakeholders to get invoices approved and paid on time.

A PO system helps controllers automate the invoice matching and approval process and close books faster.

A PO system helps finance get better visibility into their commitment spent and understand what still needs to be invoiced and paid to the vendor.

Automating The PO System For Life Science Companies

In this section, we will cover the key features of a PO system to help drive business impact in your organization. We will use ProcureDesk as an example, but the feature set should be available in all purchasing systems.

Simplifying Purchase Requisition Process

Purchasing lab supplies or capital equipment shouldn’t feel like a full-time job.

Visiting multiple websites, copying product details into an email, and waiting for someone to place the purchase order can be a frustrating and inefficient process. Then, there’s the back-and-forth to confirm if the purchase order was issued and the constant tracking to get delivery updates.

This manual approach wastes time and pulls scientists and researchers away from what they do best—research.

Now, imagine a simpler way. With just a few clicks, you can select the items you need, submit them for review and approval, and let the system handle the rest. That’s the power of a purchase requisition process.

When you log into the PO system, you can easily choose the vendor you want to purchase from. For example, if you’re ordering supplies from Fisher Scientific, the PO system will display all the pre-configured suppliers available, making the entire process seamless and efficient.

For example –

Click on the vendor’s logo, and the system will take you directly to their website. From there, you can browse your frequently purchased items and easily add them to your cart.

After adding items to your cart, click “Return cart to purchasing application.” The system automatically transfers all the details back to the purchasing system.

Here’s how it looks in the system—quick and easy.

No more copying and pasting data from websites into your purchase request. The system handles it all for you.

The process is just as simple for items not in a vendor’s catalog. Enter the details manually and attach a quote if you have one.

The PO system reduces the cycle time, reduces errors in purchase orders, and eliminates back-and-forth with vendors.

If pricing changes are causing delays, this process ensures accurate and up-to-date purchase details every time.

Budget Tracking

Tracking budgets and controlling spending is a common challenge for finance teams. A PO system simplifies this by enabling real-time budget tracking and checks.

Whether you’re a small business using QuickBooks Online or a scaling company with NetSuite, ProcureDesk has you covered. You can set up budgets by Account (chart of accounts) or combine dimensions like Account, Class, and Department.

The system performs real-time checks to ensure funds are available before making purchases.

This gives stakeholders and approvers instant visibility to stay on track with spending.

Here’s an example of how a PO system checks budget availability.

Automating Purchase Approvals

Getting approvals on time is a constant headache for life sciences organizations. Using email to chase managers wastes time and delays orders. A PO system fixes this.

Here’s how a PO system speeds up approvals:

• Central Dashboard: Track all pending approvals in one place. No more guessing or digging through emails. See everything in the queue and act fast.

• Approver Insights: Approvers get all the details they need to make decisions quickly. With budget controls built-in, they know they’re staying on track.
• Mobile Approvals: Approve requests from your phone. Get notified instantly and approve with a tap—no need to wait until you’re at your desk.
• Email Approvals: Approve directly from your inbox. The email shows all the key info, and you just click “Approve.” Simple, fast, done.

With these features, a PO system like ProcureDesk cuts out delays and keeps your team moving.

Purchase Order Automation

Scientists spend more than 10% of their time chasing purchase orders. Tasks like these eat into productivity:

• Creating purchase order documents.
• Getting approvals and signatures.
• Emailing POs to vendors and confirming receipt.
• Managing change orders and resending updated POs.
• Supplier management and creating a sourcing strategy.

All of this can be automated.

Here’s how ProcureDesk simplifies the entire process:

• Auto-Created POs: Once approved, the system generates and sends the PO to the vendor via email or EDI—no manual work is needed.
• Vendor Confirmation: Vendors confirm receipt and provide a delivery date so you always know when to expect your order.
• Accurate Pricing: Punchouts ensure you always get up-to-date pricing, cutting down on time-consuming change orders.
• Advanced Shipping Notices (ASN): Vendors can share shipment details, including tracking numbers, so you’re never left guessing.
• End-to-End Tracking: The system tracks your order from approval to delivery and keeps you updated at every step.

With purchase order automation, scientists can focus on research, not admin tasks. Let ProcureDesk handle the rest.

Here is how you can do PO tracking with ease:

Receipts Tracking

Missing packing slips is a common issue with manual receipt tracking. Without receipts, your AP team is left guessing whether an invoice can be paid.

This creates an inefficient process, as every invoice requires approval—even if the purchase order was already approved. Approving the same thing twice is a waste of time and money.

Stop chasing receipts. Instead, set up a receipt process in ProcureDesk or any other purchasing system.

How ProcureDesk Makes Receipt Tracking Easy

• Mobile Receipt Creation: Use the mobile app to log receipts instantly when products are delivered.
• Quick Steps: Open the app, select the purchase order, snap a photo of the receipt, and you’re done!

With ProcureDesk, you save time, reduce delays, and eliminate the hassle of lost packing slips.

PO Invoice Matching

Matching invoices manually is tedious, time-consuming, and prone to mistakes.

Who wants to spend hours comparing invoice lines with purchase orders? Probably no one.

That’s where automated matching comes in—it eliminates the need for manual effort and simplifies the process.

3-Way Invoice matching

Three-way matching ensures accuracy by comparing three documents: the invoice, purchase order, and receipt. This process is essential for material purchases.

1. Invoice Received: The vendor sends the invoice.
2. Matching Process: The system compares the invoice to the purchase order and receipt, checking:
   • Quantity invoiced vs. quantity received vs. quantity ordered.
   • Unit prices on the invoice vs. the purchase order.
3. Approval: If everything matches, the invoice is approved and sent to the accounting system for payment.

If there’s a mismatch, a manual review is triggered. The reviewer identifies the issue, works with the vendor if needed, and decides whether to approve the invoice.

Three-way matching reduces errors, speeds up payments, and ensures every invoice aligns with what was ordered and received.

Here is an example of a 3-way match exception:

2-Way Invoice matching

Two-way matching is generally used for service invoices. Let’s say you want your office floors cleaned. You called the vendor, they gave you a quote, and the purchase order was sent to the vendor.

Here is how a 2-way invoice matching process works:

• The invoice is received from the vendor.
• The invoice is matched with a purchase order because no receipt was created.
• The invoice price is matched and then sent for invoice review.
• The invoice review involves a review from someone in operations that the service was provided, and the vendor can be paid.

Once the invoice is reviewed, the invoice is marked as ready for payment, and the vendor is paid.

Invoice Approvals

What do you do when a vendor sends an invoice without a purchase order? This often happens with legal services, utilities, or one-off services.

That’s where an invoice approval process saves the day.

Why Do You Need An Invoice Approval Process To Improve PO System For Life Science Companies?

An invoice approval process ensures invoices are routed for review and approval before payment. With a PO system, this process is electronic, eliminating the need for manual handling. This leads to:

• Faster Approvals: Streamline the process, reducing delays.
• Audit-Ready Records: Maintain a clear electronic audit trail to prove compliance during audits easily.

Managing invoices without purchase orders becomes simple, efficient, and compliant with a PO system.

Inventory Tracking

If you have a lab, an inventory tracking system is a must to track lab supplies.

With an inventory tracking process, you can achieve the following:

• An accurate on-hand inventory count and the total value of the inventory.
• You can avoid duplicate orders because everyone has visibility into what is in the inventory, and they can check before placing an order.
• You can track accurate usage of inventory at an experiment level.
• You can use the usage information to optimize the inventory levels.

ProcureDesk makes it easier to track inventory and usage of the inventory.

As you receive the inventory, the system automatically updates the on-hand inventory. You can set up multiple locations and track inventory at each location.

Here is how the inventory report looks in ProcureDesk:

Management Reporting

Management reporting gives teams real-time insights into spending. It’s your go-to tool for tracking costs and making informed decisions.

Examples Of What You Can Do With ProcureDesk:

• Identify Top Suppliers: See who your key vendors are, what you’re purchasing from them, and who’s placing the orders.
• Plan Cash Flow: The open order report tracks open commitments, invoiced amounts, and pending deliveries.
• Accrual Reporting:  For accounts payable, quickly identify received items that are yet to be invoiced with an accrual report. Here is an example of a Spend Dashboard:

With all spending data in one system, you can easily analyze total drug development costs or the expenses of specific experiments. This cash flow visibility helps you plan effectively for future drug development.

ProcureDesk makes understanding and managing your spending simple, fast, and actionable.

Here is an example of a Spend Dashboard:

How To Select A PO System For Life Science Companies

To ensure your laboratory operations run seamlessly, it’s essential to select a Purchase Order (PO) system that perfectly aligns with your unique requirements.

Here are a few considerations for selecting a purchasing system:

Seamless Integration With Punchout Catalogs: Simplify Smart Purchasing

In life sciences, specialized equipment and supplies are essential to your research. A robust PO system integrates seamlessly with Punchout catalogs, connecting you directly to trusted suppliers from within your procurement platform.

It’s like having a virtual shopping cart that syncs perfectly with your PO system. You can browse, select, and order critical research items effortlessly—ensuring accuracy and saving valuable time.

Efficient Support For Indirect Purchases: Keep Your Lab Running Smoothly

Groundbreaking research may be your priority, but everyday essentials like office supplies and maintenance materials keep everything running. A strong PO system doesn’t just handle high-value acquisitions—it seamlessly manages indirect purchases too.

The right system offers:

• Easy Categorization: Quickly organize and track indirect purchases.
• Budget Management: Ensure spending stays within limits for every category.
• Streamlined Approvals: Simplify workflows for faster, hassle-free approvals.

With these features, your lab can operate efficiently without distractions—so you can stay focused on the science.

Smooth Implementation: Transition Without The Headache

Switching to a new system doesn’t have to be overwhelming. Choose a PO system with an intuitive interface and a straightforward onboarding process.

Here’s why it matters:

• Quick Adoption: The easier it is to use, the faster your team gets up to speed.
• Immediate Benefits: Start optimizing procurement workflows right away.
• Minimal Disruptions: Keep operations running smoothly with a hassle-free transition.

With the right system, you can focus on your scientific work while enjoying the productivity boost of streamlined procurement.

Seamless Integration With Accounting Systems: Financial Precision Made Simple

When it comes to finances, accuracy is non-negotiable. A robust PO system should integrate effortlessly with your accounting software, creating a smooth connection between financial data, cost allocation, and expense tracking.

Here’s why integration matters:

• Error Reduction: Minimize manual entry and prevent costly mistakes.
• Informed Decisions: Access real-time financial insights to guide spending.
• Perfect Synergy: Align procurement and financial processes for seamless operations.

With a well-integrated PO system, you can ensure precision, efficiency, and confidence in every financial decision. ProcureDesk supports all major systems, including QuickBooks, Xero, NetSuite, Sage, and Microsoft Dynamics.

Sustained Innovation And Support: Future-Proof Your Procurement

Staying ahead means your PO system must evolve in the fast-moving world of life sciences. Choose a solution prioritizing regular updates, feature enhancements, and responsive customer support.

Here’s why it matters:

• Stay Agile: Keep your procurement processes aligned with industry changes and technological advancements.
• Continuous Improvement: Benefit from innovations that streamline workflows and improve efficiency.
• Reliable Support: Access a team that’s ready to help whenever you need it.

With a provider committed to innovation and support, PO system for life science companies will always be ready for what’s next.

How A Biotech Company Increased Spend Visibility

The Challenge:

Cerebral Therapeutics, a clinical-stage biopharmaceutical company focused on innovative therapies for neurological diseases, faced growing pains in its procurement and financial processes. Their finance team struggled with the following:

• Manual Spending Processes: Purchase orders (POs) were generated using Microsoft Word, and expenses were tracked in Excel, leading to inefficiencies and frequent errors.
• Lack of Spend Insights: The team couldn’t track cumulative spending, vendor-specific trends, or future budget needs, making financial planning difficult.
• Scaling Issues: As the company expanded, manual processes couldn’t keep up, creating the need for additional administrative staff to manage procurement and accounting tasks.

The Solution:

To overcome these challenges, Cerebral Therapeutics implemented ProcureDesk procurement software that automated processes delivered detailed spend analysis, and seamlessly integrated with their existing Xero accounting system.

Key Features That Made the Difference:

• Automated Processes: ProcureDesk automated PO creation, order tracking, and reconciliation, reducing manual work and minimizing errors.
• Vendor Cost Analysis: The system provided granular reports on vendor spending trends, helping the team make data-driven decisions.
• Seamless Integration: ProcureDesk integrated directly with Xero, ensuring accurate and real-time financial tracking.

The Results:

By adopting ProcureDesk, Cerebral Therapeutics achieved:

• Streamlined Operations: Automation eliminated errors and inefficiencies in POs and order tracking, improving daily operations.
• Cost Savings: The company avoided hiring additional administrative staff, saving significant operational costs.
• Enhanced Spend Analysis: Detailed reports allowed the team to analyze vendor spending and project costs for drug and device development, improving budgeting and forecasting.
• Increased Efficiency: ProcureDesk’s features improved the accuracy and speed of financial processes, freeing up time to focus on core research and strategic initiatives.

The Impact:

With ProcureDesk, Cerebral Therapeutics transformed its procurement operations, cutting costs, enhancing financial visibility, and positioning the company for sustained growth in developing therapies for neurological diseases

The Bottomline

In conclusion, the challenges faced by Life Sciences Industry lab managers and finance leaders in maintaining scientific productivity and efficient spend management are undeniable.

The intricacies of research and development, manufacturing processes, clinical trials, and the need to control costs across different drug development phases highlight the urgency for a comprehensive solution.

The advent of an effective Purchase Order (PO) system emerges as a beacon of hope for these challenges. The PO system streamlines purchase orders and invoice approvals by replacing manual processes and cumbersome spreadsheets, leading to heightened productivity and accurate spend tracking.

Lab managers can now refocus on scientific endeavors, while finance leaders gain better control over burn rates and indirect expenditures that can escalate with headcount growth.