Shopify Purchase Order Management Important Facts

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Shopify’s success depends on more than just having the best products or marketing strategies. Another important aspect is to ensure that your products are always in stock. It requires efficient order management.

We’ll explain Shopify purchase orders in detail. We will also discuss how to use it.

Let’s start, without further delay.

What is a Shopify Purchase Order?

Shopify merchants can send a purchase order to their customers to document the sale of products that will be delivered later.

This allows you place orders with suppliers and not have to pay immediately. Purchase orders are used by merchants to offer buyers risk-free credit. Buyers are legally required to pay for the products once they’ve been delivered.

The purchase order is legally binding once it has been accepted by the supplier.

The order can’t be fulfilled if there isn’t an existing contract that governs the relationship between you, the seller. This provides legal protection to both the seller and buyer.

How to use Shopify Store Purchase Orders

You should use purchase orders at many different times. You can use purchase orders when you need:

  • Improved document keeping allows for better inventory and financial management.
  • Budget improvement is important before issuing a purchase or order.
  • Faster delivery because purchase orders help schedule it.
  • Improve your account payable processes and enforce 2- and 3-party matching compliance.
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However, there are also some drawbacks.

  • It is necessary to add paperwork for smaller purchases.
  • Credit cards serve the same purpose from a financial perspective.

To simplify the supply process, purchase orders can be used.

  1. You make the purchase for your Shopify store.
  2. You issue a purchase or order to the merchant on paper or electronically.
  3. The merchant accepts the purchase order. They confirm that they can fulfill it. They will notify you and ask for a change if they are unable to fulfill the order. The purchase order will be cancelled if the requested change is not possible. This allows you to find another supplier who meets your requirements.
  4. If the order is filled, the merchant prepares it by pulling the necessary inventory.
  5. Your order has been shipped. The packing slip will contain the purchase order number. Both parties can track the order’s arrival easily.
  6. To match the shipping information, the merchant sends an invoicing document with a unique invoice #, which includes the purchase order number.
  7. The agreement between the parties at the start of the association is the basis for the invoice.

Shopify offers a free purchase order template

If you have a Shopify store, you can manually track and sync your orders and create purchase orders using a template. Shopify’s purchase order template is free and allows you to do exactly that. It is formatted to provide all the information that you require.

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To get started, follow the steps below:

  1. Shopify Web Page
  2. Scroll down to Browse purchase orders by sector section, and choose the one that best suits your Shopify store. This step can be skipped.
  3. Fill in the information.
  4. Click on Submit.
  5. Wait for Shopify’s email to arrive in your inbox.
  6. Click the Get Your Order Now button.
  7. Click to Download PDF

The copy can be printed or sent electronically to the merchant.

To process purchase orders, use the official Shopify app

If you have a large Shopify store, it makes sense to invest in an electronic ordering platform to simplify the purchase order process.

This eliminates the need for paper forms that can easily be lost. It can also be time-consuming to track and sync ordered products with inventory, especially if you have multiple suppliers from different countries and regions.

Even if your Shopify store is small, you can still benefit from a purchase-order system. You can keep track of everything you buy, where you are buying it, and when.

It is easier to scale up systems and processes when your store is young.

Shopify has an official app called Stocky. It is available for stores that enable Point of Sale and have Shopify Pro at least one location.

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Stocky allows you to create a purchase order

Stocky allows you to easily manage and place all your order right from the Stocky app. Go to Apps > Stocky Inventory Management in the Shopify dashboard.

The dashboard shows you what’s coming and when, across all your suppliers.

It will also let you know when your inventory is low, where you are losing revenue, as well as which of your top-selling products.

This information will allow you to easily create a purchase or order additional stock.

To create a new order for purchase:

  1. Click the button to + Order
  2. Choose between a supplier or vendor. A supplier is a group or individuals of vendors. If you wish to place a purchase order for multiple vendors you will need to first create a supplier.
  3. Choose the supplier/vendor for which the purchase order is being placed.
  4. Select the area where you would like stock to be delivered.
  5. Click the Create Purchase Order button.

Stocky will intelligently suggest how much stock you should order based upon the rate of sales, inventory and what’s coming in.

This forecast can be adjusted. Change the values of the Forecast type’ and Forecast location’ boxes. Hit the Renew button. These are all types of forecasting.

You can also manually add additional products to your purchase order.

  1. Use the drop-down menu to select a product from the list below.
  2. Next, enter the number in the box next to it.
  3. Click on the Add button to add your product and quantity to the table.
  4. Continue this process until you have added all of the products.
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You can also bulk import using a.csv or barcode scanner. These options are available by clicking on the + Products button.

Based on the terms of the agreement with the supplier, you can also modify the base price for each item. To change the base price, click on the Value (base) column.

Once you are satisfied with your purchase order, you can send it to the vendor supplier. Stocky can send the purchase order to the vendor supplier with a personalized message attached and a.csv format. Simply click the Send button.

Click on the Download button to download the purchase order in.pdf format.

After the supplier/vendor has received the order, confirm that they are able to fill it. Then click the Confirm button. All items will be marked “not received” by clicking on the Confirm button.

Place the order at your physical store

After the items have been added to your shop, click on the Get and Sync Selected button. You must uncheck an item if it is not present before you click the button.

Let’s say the supplier/vendor sent you a different amount of goods than you expected or that some items were damaged during transit. You can request a portion and then place the remainder on back-order.

  1. Click on the arrow button beside the Quantity column. Click on the Partially Receive option in the drop-down menu.
  2. Enter the number of products that you have received. If necessary, you can add notes.
  3. Click the Update button. Now, the items will be divided into two rows.
  4. If necessary, repeat the process.
  5. Click on the Get and Sync Selected button.
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All items damaged or missing during shipment are automatically placed on backorder by the supplier/vendor.

A standard USB barcode scanner can be used to pick up the items.

  1. Click the arrow button beside the Download button. Next, choose the Barcode scanner get option.
  2. To increase your scanned count, scan each item with your barcode scanner. It is also possible to manually update it by clicking the plus or minus icon beside the Scanned column.

Stocky flashes yellow if orders are not scanned correctly, green if they were scanned accurately and red if there is too much.

3. Once you have scanned all your items, click the “Receive Scanned” button.

4. This is where you can check to make sure inventory has been received.

5. To update your Shopify inventory, click on the Receive & Sync link.

Your product is your lifeline as a direct-to consumer (DTC) brand. You can’t sell if you don’t place enough money on your purchase order. Your customer experience suffers and brand image suffers. This can lead to a drop in sales.

Your brand’s trajectory is determined by how you manage your inventory. It will trend up (you have enough product and they are selling well) and nose-dive. (You’re out stock and need to reorder and out of cash waiting for new inventory)

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Sometimes, the difference between these two scenarios can be as simple as choosing the right tool.

Cogsy can be used to fill in the Shopify missing purchase order flow.

You will be able to fulfill orders and achieve operational excellence by creating the right order at the correct time.

Access to the right information and the correct tools will allow you to take more proactive steps and increase the success of your online shop.

Let’s take a look at how Shopify works with Cogsy.

How your purchase order flow is important

A purchase order (PO), is a document that indicates a brand’s commitment of buying a specific amount of goods from a supplier or manufacturer. It is the foundation of what a retailer brand has to sell.

It is important to get POs right in order to keep your business on track to meet customer demand.

Cogsy is a proactive sales forecasting and inventory intelligence platform that helps modern brands achieve this goal. Brands can anticipate what they will get and plan accordingly by placing the correct POs with the correct SKUs, products and variants.

Imagine being able to create the perfect purchase order with just a click. Cogsy allows you to do exactly that. It’s long past the days of using spreadsheets to manage inventory and demand planning.

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Shopify sales and inventory are updated in real time so Cogsy automatically generates recommended purchase orders. This is to ensure that you have the right products at the right price. This eliminates the need to guess and self-doubt.

We can help you. We will make sure that your purchasing experience is as smooth as possible so that you can focus on the other areas in your business.

Access to Shopify Purchase Order (PO), visibility

To update your inventory, you will need to get a PO after creating it.

Some brands have expensive inventory management systems (IMS), or third-party logistic (3PL), that allow for an end-to–end purchase order flow.

Shopify store owners are not able to see orders placed until they get them. Cogsy helps them bridge that gap.

Shopify merchants can have full visibility with Cogsy’s PO flow – from the moment they place an order until the moment they receive it. Cogsy allows you to:

  1. Track and mark the incoming stock as “Received”
  2. Label the order “Partially Received” if not all items are received.

They rely on the most current inventory data to create purchase orders, update POs, receive stock, cross-check POs and even cross-check historical POs.

Cogsy’s Shopify PO flow allows for new workflows that Shopify merchants do not have access to. They can also do it without having to implement an IMS or switch to a 3PL that supports an ending-to-end purchase order flow.

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With agility, adapt to uncertainty

Ecommerce DTC brands are experiencing a lot of turmoil right now. Supply chains are volatile, perhaps more than ever. Customer demand changes faster that a 15-second Instagram video.

As with all things in life, they are always changing.

Brands that thrive in this environment are able to adapt to changing situations and uncertain times.

We have designed our purchase order flow to reflect this. This is a powerful way for your brand to have the flexibility it needs when creating, updating and receiving purchase orders. It also allows you to make the best recommendations possible.

Cogsy’s purchase orders flow offers proactive precision and agility. It is as easy as clicking a button.

As changes occur within the business, it is important to take smart and proactive actions. This will influence what happens next: replenishment. You can see when stock will run out, and when products will be available for backorder . There are many more.

These events all contribute to the bottom line of your brand. These critical decisions should be made based on accurate and current data.

We make purchasing and order management as easy and efficient as possible. We offer agility when you are in need and keep you out of the way when it is not.

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Optimize your operations immediately

As I mentioned earlier, sometimes all that is needed to make operational improvements that can change the game is the right tool.

The purchase order flow provides a comprehensive view of your inventory and allows you to keep track of all orders. It’s powerful and useful, whether you use it to collaborate with others or keep track of your own inventory,

Remember:

  1. With just one click, you can create the best purchase order.
  2. An end-to-end PO flow streamlines purchasing processes and provides visibility from the time you place a purchase order to the moment it is received.
  3. You need to be able to adapt to changing times and take the right decisions based upon the most current and accurate data.
  4. Your brand will be able to drive real commercial value by optimizing your POs.

Learn more about our PO flow and see what’s new. Check out our latest product update.

To empower teams to make better, more proactive operational decisions with the most current data, we constantly update our tools and products.

We’d love to know what your goals are so that we can help you make them a reality. Tweet to share your brand’s 2022 goals and the Cogsy Community.

Subscribe to our newsletter to stay up-to-date on Cogsy news and updates. You’ll also receive our regular case studies, in-depth guides, and tips for operational excellence.

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FAQs for Shopify Purchase Orders

What is a Purchase Order?

A purchase order is an official document that a buyer issues to the seller. The purchase order includes information about the products, ordered quantity, and agreed prices.

What are the four types of purchase orders?

There are four basic types of purchase orders.

  1. Standard Purchase Order
  2. Contract Purchase Order
  3. Planned Purchase Order
  4. Blanket Purchase Order (Standing order)

How do you place a Shopify purchase order?

You can use the template to create a Purchase Order (PO) in Shopify. This template contains important information about your company, vendor and purchase order information. It also includes information about the products that you wish to order.

Last words

Shopify has done an amazing job of providing comprehensive tools to all Shopify store owners.

This tool is free and allows you to create unlimited Shopify order orders for your store. You may have already subscribed to Shopify POS Pro if you own larger stores. Stocky, a fully-featured inventory management app, can do everything you need.

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