In the fast-paced world of eCommerce, managing inventory efficiently is crucial for success. Purchase orders (POs) are a vital tool for keeping your stock in check, ensuring timely deliveries, and building stronger supplier relationships. If you're running a Shopify store or developing a Shopify app, integrating purchase order management can streamline procurement and inventory operations for your users.
What Are Purchase Orders?
A purchase order (PO) is a formal document that a buyer sends to a supplier to confirm an order. It outlines the products, quantities, prices, delivery timelines, and payment terms. POs create clarity, ensuring both the buyer and supplier are on the same page, reducing errors and disputes.
Why Include Purchase Orders in a Shopify App?
1. Streamlined Inventory Management
By integrating POs into a Shopify app, users can track their inventory levels more effectively and reorder stock seamlessly.
2. Supplier Relationship Management
POs provide clear communication between Shopify merchants and their suppliers, helping them build trust and accountability.
3. Error Reduction
POs reduce errors by documenting orders formally, preventing misunderstandings about quantities, prices, or delivery dates.
4. Data-Driven Insights
Merchants can analyze purchase data to identify trends, optimize stock levels, and improve cash flow management.
Features of a Shopify App with Purchase Order Management
1. Automatic PO Generation
Automatically generate POs based on low stock alerts or predefined reorder thresholds.
2. Supplier Database Integration
Maintain a centralized database of suppliers, complete with contact details, preferred pricing, and terms.
3. Tracking and Status Updates
Allow users to track the status of POs (e.g., Pending, Approved, Shipped, Delivered) and receive notifications for updates.
4. Cost Tracking
Help merchants monitor their procurement costs and compare them with sales revenue for better financial insights.
5. Customizable Templates
Provide merchants with customizable PO templates that align with their brand identity.
How to Create a Purchase Order in a Shopify App
-
Access the Purchase Order Feature
From the app dashboard, navigate to the Purchase Order section.
-
Select Products to Reorder
Choose the items that need replenishment based on inventory levels or sales trends.
-
Choose a Supplier
Select the supplier from a preloaded database or add a new one.
-
Set Order Details
Specify quantities, agreed prices, and delivery deadlines.
-
Generate and Send the PO
Create the purchase order and email it directly to the supplier or download a PDF copy for manual sending.
Best Practices for Shopify Merchants Using Purchase Orders
1. Monitor Inventory Levels Regularly
Integrate inventory management with POs to ensure stock levels are updated in real-time.
2. Build Relationships with Suppliers
Consistently communicate with suppliers to negotiate better terms and address any issues promptly.
3. Audit Procurement Processes
Regularly review procurement workflows to identify inefficiencies or potential cost savings.
4. Use Automation
Leverage app features like automatic PO generation and low-stock alerts to save time and prevent stockouts.
Example Shopify Apps Offering Purchase Order Features
1. Stocky
A Shopify app focused on inventory and purchase order management, ideal for small-to-medium-sized businesses.
2. Inventory Planner
Combines forecasting with purchase order creation to help merchants maintain optimal stock levels.
3. TradeGecko
Offers end-to-end inventory, order, and purchase order management for scaling businesses.
4. Mimoran: Purchase Orders Plus
Purchase Orders Plus helps merchant create purchase orders (POs) and restock inventory.
Purchase Orders Plus allows you to easily create Purchase Orders (POs) sent to suppliers with product quantities and prices. Then you just need to transfer and so your product has been updated to the location that you want. Simple and fast! We also want to help merchants easily track the low stock products. Receive notifications schedule your alerts daily, weekly or monthly, send alert to multiple recipients with multiple locations.
- Easy to create Purchase Orders for suppliers and restock inventory.
- Transfer products from Purchase Orders to locations accurately and quickly.
- Receive/Return Purchase Order partially or fully, updates inventory in Shopify.
- Forward POs straight to your suppliers via email. Export POs as CSV and PDF.
- Send low stock alert with schedule your alerts daily, weekly or monthly.
Conclusion
Integrating purchase orders into your Shopify app can empower merchants to take control of their inventory, improve supplier relationships, and operate more efficiently. Whether you're building an app or using Shopify as a merchant, incorporating robust PO features is a step toward smarter eCommerce management.
Have you used purchase orders in your Shopify store or app? Share your experience and tips in the comments below!