What if you could transform your procurement process into a smooth, efficient operation with just a few clicks?

Automating purchase orders does exactly that, making your workflow faster and error-free.

In this article, we will guide you through automated purchase orders and how to streamline your eCommerce procurement process for greater efficiency and accuracy.

Let’s begin!

Understanding purchase order automation

Purchase order (PO) automation means streamlining the entire process of creating, approving, and managing your eCommerce purchase orders.

It eliminates manual tasks such as planning the PO, data entry, approval routing, and tracking, reducing human errors and speeding up procurement.

Key terms to know

• Purchase Order (PO): A formal document sent to a supplier specifying the goods required, quantities, pricing, and delivery terms.
• Procurement: The process of sourcing and acquiring goods required for business operations, often involving supplier selection and negotiation.

Benefits of automating purchase orders

1️⃣ Increased accuracy: Automating purchase orders ensures correct products and quantities are ordered, eliminating common manual errors.

2️⃣ Reduced errors: Automation cuts down on human mistakes, which is vital for managing high volumes of eCommerce orders.

3️⃣ Streamlined approvals: Automated workflows speed up PO approvals, allowing eCommerce businesses to keep pace with fast restocking needs.

4️⃣ Enhanced visibility: Get real-time insights into inventory, order status, and supplier performance, helping you respond quickly to issues.

5️⃣ Cost savings: Automation reduces time spent on manual tasks, freeing up resources for other growth-focused areas of the business.

6️⃣ Faster processing: Automating purchase orders accelerates the procurement cycle, ensuring your eCommerce store stays stocked and ready.

7️⃣ Better supplier relationships: Consistent and timely communication with suppliers improves reliability and ensures on-time deliveries.

8️⃣ Greater compliance: Automation helps ensure all POs meet company policies and regulations, minimizing risk and mistakes.

Future trends in purchase order automation

In 2025, the adoption of automated PO systems continues to grow, driven by the increasing recognition of its benefits.

Key trends and statistics highlighting this shift include:

• Increased adoption: Two-thirds of finance professionals anticipate that their Accounts Payable (AP) departments will be fully automated by 2025.
• Market growth: The procurement software market is projected to grow 7.6% per year, reaching $13.2 billion in 2031. The AP/AR automation market is expected to grow from $2.4 billion in 2024 to $2.61 billion in 2025.
  

The process of automated purchase order

Automating purchase orders begins with selecting the right PO automation platform for your eCommerce business.

For a better insight into such platforms, you can check out our article about Best Purchase Orders Software!

Once the platform is set up, the system automates workflows, including PO creation, approval, and tracking, resulting in faster order processing, fewer errors, and better visibility into your procurement process.

Here is what you can do easier with automated PO platforms:

1️⃣ Create & customize purchase order

Creating purchase orders can be time-consuming, especially when sorting through multiple suppliers.

With automated tools, you can generate accurate supplier-specific purchase orders quickly, saving both time and effort.

💡 Why this is essential: Streamlined PO creation reduces manual input and improves accuracy by eliminating common errors.

🛠️ Steps that can simplify PO creation:

• Filtering products by the supplier for faster PO creation.
• Including supplier-specific SKUs to reduce errors and ensure accurate order details.
• Customizing order quantities, adding notes, or removing line items as needed.

Pro tip

Fabrikatör enables you to create and customize purchase orders effortlessly by automating product filtering, including supplier-specific SKUs, and allowing modifications to quantities and line items to suit business needs.

2️⃣ Leverage simplified PO sharing & Supplier communication

Once a purchase order is created, sharing it with suppliers promptly is key to keeping the process moving smoothly.

The ability to instantly send POs ensures clear and timely communication with suppliers.

📌 Why this is crucial: Timely sharing POs with all necessary details prevents delays and ensures suppliers have everything they need to fulfill the order.

Pro tip

Fabrikatör simplifies PO sharing and supplier communication by allowing you to instantly send accurate purchase orders with customized messages and attachments, ensuring clear and timely communication with suppliers.

3️⃣ Importing & Bulk managing purchase order

When handling multiple suppliers or large volumes of orders, manually entering each purchase order can be overwhelming.

Bulk importing purchase orders simplifies this by allowing you to upload multiple POs at once.

💡 Why this is essential: Importing bulk orders saves time and reduces manual errors, making the process faster and more efficient.

Pro tip

Fabrikatör allows you to import and bulk manage purchase orders effortlessly by uploading .xls or .csv files, ensuring accurate data mapping and streamlining the processing of multiple orders at once.

4️⃣ Track shipments & Manage freight efficiently

Once a PO is sent, tracking the status of shipments is essential to ensure timely delivery.

Automated tracking and freight management tools help keep you informed in real-time.

💡 Why this matters: Real-time shipment tracking prevents delays and allows you to stay ahead of any issues with orders or deliveries.

🛠️ What makes shipment and freight planning easier:

• Add tracking codes to purchase orders for monitoring shipment status.
• Use freight planners to select the preferred shipping methods (Air, Ocean, Rail, or Road).
• Generate tracking and freight performance reports to optimize shipping strategies.

Pro tip

Fabrikatör helps you track shipments and manage freight efficiently by integrating real-time tracking codes and offering a freight planner to select the best shipping methods, ensuring timely deliveries and optimizing logistics.

5️⃣ Simplified inventory receiving & Stock updates

When goods arrive, ensuring that inventory levels are updated promptly is crucial to maintaining accurate stock.

Automated systems help update inventory in real-time as goods are received.

💡 Why this is essential: Real-time updates prevent discrepancies and ensure accurate stock levels for better decision-making.

🛠️ How it’s usually done:

• Automatically update the received inventory and sync it with your inventory system.
• Accept or reject stock directly from the PO and track partial shipments.
• Use barcode scanners for faster, more accurate receiving.

Pro tip

Fabrikatör simplifies inventory receiving and stock updates by automatically syncing received goods with your inventory and allowing you to use barcode scanners for fast, accurate stock updates in real-time.

6️⃣ Manage minimum order quantities (MOQs) & Batch sizes

Managing minimum order quantities (MOQs) ensures that you meet supplier requirements without overstocking.

Automation makes it easier to stay on track with MOQ requirements and adjust batch sizes when needed.

💡 Why this is important: Proper MOQ management helps avoid unnecessary costs and ensures that supplier requirements are met.

Pro tip

Fabrikatör allows you to manage minimum order quantities (MOQs) and batch sizes by automatically setting MOQs at the product group level and alerting you when quantities fall short, ensuring efficient bulk ordering without overstocking.

7️⃣ Customize PO emails & numbering

Customizing PO emails and numbering formats is important for maintaining a professional and consistent communication style.

Personalizing POs also helps in managing order tracking and future reference.

💡 Why this matters: Tailoring PO numbers and emails makes them easier to track and helps maintain consistency across orders.

Pro tip

Fabrikatör allows you to customize PO emails and numbering by setting custom prefixes, adjusting sequential numbering, and personalizing email content, ensuring your purchase orders align with your business's communication style.

8️⃣ Organize & Sort purchase orders efficiently

Managing numerous purchase orders becomes easier when you can quickly access and organize them by various criteria.

Sorting and archiving POs ensure that your records are always organized and easily retrievable.

💡 Why this matters: Sorting and archiving help you stay organized, ensuring that you can quickly access and manage orders.

🛠️ What to do to organize your POs better:

• Sort POs by product name, quantity, or fulfillment status.
• Automatically save preferred sorting settings for future use.
• Archive old or completed POs to keep the dashboard uncluttered.

Pro tip

Fabrikatör helps you organize and sort purchase orders efficiently by allowing you to sort POs by product name, quantity, or fulfillment status and automatically save your preferred sorting settings for quick access.

9️⃣ Revert received inventory in case of errors

Sometimes, inventory may be received incorrectly or damaged, and adjustments are needed.

Automated systems allow you to reverse received inventory and update your records easily.

💡 Why this matters: Reversing incorrect inventory entries ensures accurate stock levels and prevents issues with future orders.

Pro tip

Fabrikatör allows you to revert received inventory in case of errors by providing a simple process to adjust stock levels and update records, ensuring transparency and accurate inventory management.

🔟 Sync supplier SKUs & Real-time inventory updates

Accurate inventory management relies on ensuring that supplier SKUs are aligned with internal records.

Real-time syncing with inventory systems helps prevent overselling and ensures stock accuracy.

💡 Why this matters: Syncing supplier SKUs ensures that you have consistent and accurate records between your suppliers and your inventory system.

🛠️ How it’s done:

• Store supplier SKUs alongside internal SKUs for easy reference.
• Ensure real-time syncing with your inventory system to keep stock levels updated and prevent overselling.

Pro tip

Fabrikatör ensures accurate communication by syncing supplier SKUs with your internal inventory system and updating stock levels in real-time, preventing overselling and maintaining consistent product data across platforms.

Challenges in implementing purchase order automation

1️⃣ Difficulty in matching purchase orders to customer demand

In eCommerce, accurately forecasting demand for products is crucial for ensuring that purchase orders match the actual needs of customers.

Automation can struggle to adapt to sudden spikes in demand, leading to either overstocking or stockouts.

💡 How to overcome it:

• Implement demand forecasting: Use AI-driven demand forecasting tools that can help predict shifts in demand based on sales trends, seasonality, and promotions, so that purchase orders are better aligned with real-time needs.

2️⃣ Supplier variability in fulfillment times

Different suppliers may have varying lead times, and integrating this complexity into automated systems can be challenging.

Without flexibility, automation may not account for delays or misaligned delivery schedules, which could disrupt eCommerce operations.

💡 How to overcome it:

• Build flexibility into workflows: Use a flexible automation system that allows adjustments to delivery dates, quantities, and supplier-specific settings to handle variations in lead times without disrupting the overall process.

Pro tip

Fabrikatör is an all-in-one inventory management platform for Shopify & online stores users designed to simplify your supply chain operations.

We can provide you with features like:
🔥 Forecasting to predict demand,

🔥 Purchase Orders for easy order creation,

🔥 Analytics to track performance,

🔥 Replenishment for automated restocking,

🔥 Backorders to keep sales flowing even when items are out of stock,

🔥 Freight Planner to optimize shipping options.

With Fabrikatör, managing your entire inventory process is effortless, allowing you to focus on growing your business.

3️⃣ Data accuracy and migration issues

When transitioning from manual to automated purchase orders, data accuracy and migration can pose significant challenges.

If data is entered incorrectly or incomplete, it can affect the entire process, leading to mistakes in ordering, invoicing, or inventory management.

💡 How to overcome it:

• Clean and organize data: Before migrating, audit and clean up your existing data to ensure accuracy.

4️⃣ Managing returns and reverse logistics

In eCommerce, managing returns and reverse logistics can complicate purchase order automation.

Return processes often involve updating inventory, issuing refunds, and adjusting purchase orders, which can be difficult to automate effectively.

💡 How to overcome it:

• Integrate returns management: Choose a purchase order automation system that includes reverse logistics management, so that returns are automatically processed, inventory is updated, and purchase orders are adjusted accordingly.

Automate purchase orders with Fabrikatör!

Fabrikatör is an inventory management solution for Shopify stores that automates purchase order creation, supplier communication, and supply chain management.

Our Purchase Orders feature takes the hassle out of purchase orders by automating everything from creation to approval, making procurement faster, smoother, and error-free.

Besides easy PO management, we can additionally provide you with:

✨ AI-driven forecasting: Predict demand using AI algorithms based on past sales, seasonal trends, and promotions.

✨ Optimized freight planning: Compare air and sea freight options to balance cost and delivery speed.

✨ Financial and operational tools integrations: Integrate with QuickBooks, Xero, and ShipHero for streamlined financial processes and logistics.

✨ Advanced analytics: Monitor inventory, sales, and supply chain performance with 100+ metrics for data-driven decision-making.

✨ Backorder automation: Allow customers to order out-of-stock items while they’re in transit, recovering lost sales.

✨ Inventory synchronization: Automatically update stock levels across all sales channels to prevent overselling.

✨ User-friendly dashboard: Access all key metrics and tools in one intuitive interface for efficiency and clarity.

Ready to optimize your procurement process?

Try Fabrikatör or request a demo today!