Purchase order automation for maximum retail success
Purchase order automation can be particularly useful. An inventory management system with purchase order automation improves efficiency by a significant margin by using alerts to notify merchants when they are running low on specific items and can even send purchase orders straight to the manufacturer to ensure that even during busy times, retailers don’t run the risk of running out of stock.
Traditionally, creating purchase orders has been subject to human error. Those responsible may overlook a certain SKU, incorrectly write down specific SKU numbers or inventory levels may run unexpectedly low while the order is being created, resulting in an incomplete purchase order being sent to distributors. The right inventory management system can help eliminate the chances of human errors. Plus, by allowing eCommerce technology to take care of this time-consuming task, retailers can free up their employees to take care of other mission-critical activities, such as order fulfillment.
Automated purchase orders can also help improve the responsiveness of retailers. Without an automated inventory management system, merchants may not realize how quickly specific items are running out of stock. Automated alerts enable them to keep a finger on the pulse of their particular market, quickly noting fast-sellers and ensuring they can capitalize on newly observed trends.
How to automate purchase orders
The modern inventory management system is extremely robust, allowing retailers to effectively manage inventory levels by alerting them to inventory levels and placing orders when necessary. At the same time, retail is a dynamic industry, so the system must also enable merchants to react smartly to conditions.
The first way retailers can automate purchase orders is by setting inventory thresholds across all SKUs. When inventory levels hit a certain number, an alert could be sent to the retailer and a purchase order could even be drafted and sent to distributors if need be. These thresholds can be established across multiple channels (accounting for inventory held across marketplaces, online and offline stores) or on a channel-by-channel basis.
At the same time, alerts give retailers the power to modify purchase orders. Perhaps they don’t want to immediately restock on a certain item or they want to wait until more SKUs are running low so they can get a bulk discount on orders. With alerts, they are at least aware of inventory levels and can make the best choice for their current situation.
In general, the logic rules powering the inventory management system are the key to success. Merchants can make truly complex rule sets, which in turn gives them even more control over their inventory. Successfully using these logic rules will be pivotal in using purchase order automation to improve efficiency.