How to Send Orders to Suppliers on Shopify?

Purchase orders are crucial to running an online (or retail) store. It ensures that stock levels never drop below demand and that customers are satisfied with the store. For Shopify merchants, sending orders to suppliers varies widely—ranging from manual spreadsheets to advanced automated tools. 

Whether you're a small business owner or a growing e-commerce empire, you’re leaving money on the table with bad planning. Every year businesses lose a trillion dollars from inventory distortion due to bad planning. 

And purchase order management is at the heart of it. Most businesses take a reactive rather than a proactive approach with their order management system. The right purchase order management process will save you time, reduce errors, and improve supplier relationships:

1. Build an accurate supply plan with historical data and demand planning instead of guestimates 
2. Use data driven buying- analyse trends, seasonality to optimize for your goals. 

This guide will walk you through different methods of sending purchase orders in Shopify—from manual approaches to seamless automation that helps you take a more proactive approach and scales with your business.

Step-by-Step Guide: How to Send Orders to Suppliers on Shopify?

Scenario #1: Using Spreadsheets

You’ve started a side business on Shopify OR are testing the waters before you go big. You have a few product variants and one or two suppliers. 

At this stage: 

1. Manual stock takes 

You rely on Shopify’s inventory management system to track inventory. Because of its limited features, you need to perform manual stock takes and update inventory through the admin login in your store. 

2. Use templates to create orders

Whether it is a basic, dynamic or minimal purchase order, you can find free order templates online to create orders and create a standardized structure for all your supplier communication. 

3. Mail suppliers

Since Shopify doesn’t have an inbuilt mail system, you need to rely on third-party email like Gmail and Yahoo or messaging apps like Whatsapp and Telegram to send your orders. You can even use project management tools like Asana and Slack if you want a more professional setup. 

Due to the scale of things a simple spreadsheet suffices when you need to track inventory or determine how many items to purchase. However, as your business grows, this manual approach can become time-consuming and prone to errors, making scaling your operations a challenge.

Scenario #2: Using Inbuilt Features to Send Orders to Suppliers on Shopify

As your product range expands and supplier relationships multiply, Shopify's built-in purchase order management system becomes increasingly valuable. It offers a centralized platform to:

• Create and manage purchase orders
• Track inventory levels

By leveraging Shopify's inbuilt tools, you can streamline parts of your supply chain management. Here’s how you can create and manage orders for suppliers:

1. How to create a purchase order in Shopify:

• Head to Products > Purchase orders in your Shopify admin
• Click Create purchase order

‍

• Select the supplier you're placing the order with
• Choose the products you need to restock and enter the desired quantities
• (Optional) Add a delivery date or any relevant notes for your supplier
• Click Save as Draft to create the purchase order

2. How to download a purchase order in Shopify:

• Once your purchase order is created, click on its name to open the details page
• In the top right corner, you'll see a button labeled Export PDF. Click this to download a printable copy of the purchase order for your records or to share with your supplier

3. How to update inventory according to purchase orders:

• When you create a purchase order, it doesn't directly affect your inventory count. It acts as a planned order to track what you've ordered
• Once your supplier delivers the products, mark the order as received to update your inventory levels
• Go back to the purchase order details page
• Click the “Receive Inventory” button
• Enter the quantity of each product you received 
• Click Save to update your inventory with the received goods

It’s a small step up from Spreadsheets. It is less hassle, but equally time-consuming, as each step of the process relies on manual inputs. Careful attention is crucial throughout the process, which can limit scalability as your business continues to grow.

Scenario #3: Automating sending orders to suppliers on Shopify 

As your Shopify business grows, you will find yourself managing multiple warehouses, suppliers, and Shopify storefronts. You’re juggling with 100s of SKUs. At this stage, you’re losing precious man hours and money by manually tracking inventory items and entering quantities in purchase orders. 

Your team is less than satisfied. They would rather spend time creating stronger supplier relationships, and managing risks of supply chain break disruptions. This is where automation can save you hundreds of hours and reduce errors. An automated tool like Prediko can make your life easier. Here’s how: 

Interactive buying table:

Prediko replaces Shopify’s simplistic inventory with an interactive Buying Table. This table categorizes your SKUs into four clear categories:

• Healthy: These SKUs are well-stocked and don't require immediate action
• At risk: These SKUs are at risk of running out and need a "Buy Before" order
• Excess: These SKUs have excess stock and potentially require adjustments
• Stock out: These SKUs are out of stock and require a "Buy Now" order

Note: Prediko also accounts for the lead time and labels products as “At Risk” after factoring in this data. 

Prediko also recommends the number of units to order. These recommendations are based on historical sales data: 

To place a purchase order for products that are “At Risk” or facing “Stockout”, you simply 

• Select the SKUs and click on “Create PO”

You can even place an order via the New Order dashboard: 

• Click on “New Order” and select the desired SKUs

The raw material dashboard allows you to do the same for raw materials: 

With just two simple clicks you can place a purchase order with Prediko! It eliminates any fiction in the process of placing purchase orders: 

• No need for manual inventory analysis
•  Shows inventory for multiple stores in one view. No switching back and forth to manage different stores on Shopify. 

Additionally: 

• Prediko's in-app messaging feature, allows you to directly communicate with your suppliers, eliminating the need for external email tools. 
• The platform automatically syncs with your Shopify store, ensuring accurate inventory levels and eliminating the need for manual updates.
• Prediko's integration with Shiphero WMS further enhances your supply chain visibility, allowing you to track inventory across multiple platforms.
• Prediko has a strong integration with Gorgias as well. If a popular item is out of stock but has an expected restock date, automated customer service responses can be triggered through Gorgias to inform customers immediately. Prediko and Gorgias integration helps businesses half their inventory ticket response time!

To summarize, 

See Prediko in action:

Effective purchase order management is crucial for the success of any online business. However, manual processes can be time-consuming and prone to errors. In the next section, let’s take a look at some best practices for managing supplier orders within Shopify.

Best Practices for Managing Supplier Orders in Shopify

Effectively managing supplier orders is critical for maintaining smooth operations and ensuring that your Shopify store is running efficiently. 

In this section, let’s take a look at some key practices that will improve your order management process and optimize the overall efficiency of your supply chain.

1. Establish effective communication channels with suppliers

To ensure effective communication, establish a reliable communication channel—such as email or a dedicated supplier portal. 

This will help avoid any back-and-forth caused by the use of different communication channels and ensure your team as well as the suppliers are on the same page. Additionally, set up regular communication schedules to discuss order status, potential issues, and plans to streamline the process. 

2. Standardize order documentation to avoid errors

Make sure to use a standardized format for orders. These orders should include important details such as: 

• Product details: Item descriptions, quantities, and specifications
• Shipping address: The destination address for the order
• Delivery date: The expected delivery date
• Payment terms: The agreed-upon payment method and terms
• Variant details: size, color, and material for variants you order. 

3. Track shipments and follow up proactively with suppliers

If you are relying on Shopify’s inbuilt features, you need to ensure you take the following steps to track deliveries and follow up with your suppliers: 

• Choose a reliable tracking system: Select a system that provides real-time updates on the status of your shipments.
• Track shipments regularly: Monitor the progress of your shipments to identify any potential delays or issues.
• Set up alerts: Use alerts or notifications to be informed of any significant changes in shipment status.
• Schedule regular check-ins: Establish regular check-ins to discuss order status, potential issues, and upcoming shipments.

4. Implement quality control measures to maintain consistency

Quality control ensures customer satisfaction and maintains brand reputation:

• Conduct incoming inspections: Inspect all incoming shipments to verify product quality and quantity.
• Establish quality control checkpoints: Identify key points in the production process where quality checks are necessary.
• Use quality control tools: Employ tools like checklists, inspection reports, and statistical process control (SPC) to monitor quality.

Automating the Order Sending Process with Shopify

As we’ve seen above, automating order sending process with tools like Prediko can make a significant impact on your day-to-day operations. It also makes it easier to implement the best practices for order management: 

Benefits of automating supplier orders

• Saves Time and Reduces Manual Errors: By automating the order-sending process, you eliminate the need for manual data entry, reducing the risk of human error.
• Ensures Consistent Communication with Suppliers: Automated systems can send standardized purchase orders and notifications to suppliers, ensuring consistent communication and reducing misunderstandings.
• Automates Reorder Points Based on Inventory Levels: Automated systems can automatically trigger purchase orders when inventory levels reach predefined reorder points, minimizing stockouts and overstocking.
• Improve Inventory Accuracy: Automated systems can track inventory levels in real time, ensuring accurate data and preventing stockouts or overstocking.
• Minimize Stockouts: Automated reorder points can help you maintain optimal inventory levels, reducing the risk of stockouts and lost sales.
• Enhance Demand Forecasting: By analyzing historical sales data and current trends, automated systems can provide more accurate demand forecasts, helping you plan your inventory and purchasing accordingly.

Popular Shopify tools and apps for automating supplier orders

• Stocky: A user-friendly inventory management app that automates purchase order generation and supplier communication.
• TradeGecko: A comprehensive inventory and order management solution that offers advanced automation features, including automated purchase order generation and supplier integration.
• Prediko: An AI-powered supply chain management platform that automates inventory management, purchase order generation, and supplier communication.

Kimai reduces manual workload by 20 hours per week with Prediko’s automated ordering 

Kimai, a leading health and wellness brand, struggled with manual inventory management as their business grew. Spreadsheets and manual order processing became time-consuming and prone to errors.

By implementing Prediko, Kimai automated their supplier order process. Prediko's features like automated purchase orders based on real-time inventory data and reorder points saved them a significant amount of time. Kimai reports a reduction of 20 hours per week previously spent on manual inventory tasks. This freed up their team to focus on other critical areas like product development and marketing.

Top Shopify Apps for Supplier Order Management and Automation

Shopify's ecosystem offers a variety of apps designed to streamline and automate supplier order management. Here are some of the top contenders:

1. Prediko

Prediko is a powerful AI-driven supply chain management platform integrating seamlessly with Shopify. It automates inventory management, purchase order generation, and supplier communication, saving you time and reducing errors. Key features include:

• Real-time inventory sync: Prediko automatically syncs with your inventory, automatically updating received items so you don’t have to waste time making the changes manually. 
• Automated purchase order generation: Automatically generate purchase orders with recommended quantities based on demand forecasts and reorder points. Prediko’s buying table highlights items that are “at Risk” or “Stockout”. With one simple click, you can place orders for these items. 
• Supplier communication: Prediko has an inbuilt mailing system. You can directly communicate with suppliers within the platform.
• Real-time PO tracking: Every purchase order is available in one view with Prediko. You can create and review purchase orders on the same platform. Prediko also allows you to import and track outstanding POs with ease.  

2. Stocky

Stocky is a user-friendly inventory management app that simplifies supplier order management. It helps you track inventory levels, generate purchase orders, and manage supplier relationships effectively. Key features include:

• Inventory tracking: Monitor stock levels and set low-stock alerts.
• Purchase order creation: Easily create and manage purchase orders.
• Supplier management: Centralize supplier information and communication.
• Barcode scanning: Quickly scan products and update inventory levels.

3. TradeGecko

TradeGecko is a comprehensive inventory and order management solution that offers advanced features for supplier order management. It helps you streamline operations, improve efficiency, and scale your business. Key features include:

• Inventory management: Track inventory across multiple warehouses and locations.
• Purchase order management: Create and manage purchase orders with ease.
• Supplier management: Centralize supplier information and communication.
• Advanced reporting: Gain insights into your business performance.

4. Spocket

Spocket is a dropshipping app that connects you with suppliers worldwide. It offers a wide range of products and streamlined order fulfillment, making it easy to manage supplier orders. Key features include:

• Product sourcing: Access a vast catalog of products from various suppliers.
• Order fulfillment: Automatically fulfill orders directly from suppliers.
• Inventory management: Track inventory levels and reorder points.
• Shipping and tracking: Manage shipping and track orders.

5. Zendrop

Zendrop is another popular dropshipping app that simplifies supplier order management. It offers a user-friendly interface, fast shipping times, and excellent customer support. Key features include:

• Product sourcing: Access a wide range of products from various suppliers.
• Order fulfillment: Automatically fulfill orders directly from suppliers.
• Inventory management: Track inventory levels and reorder points.
• Shipping and tracking: Manage shipping and track orders.

When choosing a Shopify app for supplier order management, consider your specific needs, budget, and the level of automation you require. By leveraging these powerful tools, you can streamline your operations, improve efficiency, and grow your business.

By automating your purchase order process with Prediko, you can significantly reduce these operational headaches and improve efficiency.

Prediko's powerful features, such as real-time inventory tracking, automated purchase order creation, and seamless supplier communication, empower you to focus on strategic initiatives rather than these mundane check-ins and tasks.

Ready to streamline your supply chain? Sign up for a free trial of Prediko today and experience the difference.