Future of Commerce Blog

Feature of the Month: Purchase Orders


Stitch’s ‘Feature of the Month’ is here! In this monthly series, we highlight an operational or logistical challenge one of our customers or prospective customers are facing, and share details into how Stitch’s inventory management software can help to solve these common challenges.

This month’s feature highlight? Purchase Orders.

A high-growth cosmetic brand who outsources manufacturing and wants to maximize their sales margins. They sell wholesale and through e-commerce, and are trying to change their operations to accommodate for landed costs and other details involved with a purchase order.

Challenge: Manual Purchase Orders
Since many cosmetic brands outsource manufacturing, they need to account for landed costs, and ensure their wholesalers can be invoiced with ease. A large portion of time is spent manually recording each purchase, filling in customer and wholesale information, and allowing for extra costs (such as landed costs) that are calculated with each unit sold.

Purchase orders can be a blocker in growth due to manual processes such as entering information into spreadsheets and individually emailing each wholesaler and customer leading to inefficient use of time and error-prone workflows. Brands who outsource manufacturing also have a difficult time understanding their margins due to costs such as taxes and tariffs, or unforeseen edits of other costs after purchasing for any reason. Because of this, creating a purchase order can be time-intensive, and somewhat of a gamble for brands.

As the cosmetic brand continues to grow, typically the number of purchase orders increases which makes tracking purchase orders manually operationally inefficient. To speed up purchasing decisions while avoiding overstocking or stocking out of product will save money for the brand so they can reinvest that back into new marketing campaigns, new products, and new ideas. Gaining visibility into on-hand stock reduces purchasing errors, and allows for automated reordering suggestions.  

Stitch Solution: Advanced Purchase Order Functionalities
One issue the cosmetics brand has is knowing what to order when based upon demand of product, and their manufacturer’s lead time to process, produce, and ship the items. Stitch is able to track and provide information regarding sales velocity of each item so the brand can safely access the time needed to reorder, produce, and have the item available for sale. There are over 60 dynamic reports within Stitch which include tracking inventory levels, production cost, and production cycle, so brands can stay informed on the purchase order process.

Brands lose income and customers from overstocking, and stocking out of product. By implementing low-stock alerts, autofilling items that need restocking, and automated purchase orders, brands are able to ensure they are not missing out on sales, and in-turn, making customers happy. Purchase orders can be drafted so other team members can edit when necessary, even after the purchase order has been sent out. Stitch’s advanced purchase order functionalities also accommodate for shipping changes mid-route, line-item supplier discounts and changes, and the brand’s ability to show or hide certain prices.

By ensuring that purchase orders are automated from start-to-finish, the brand is able to save money on time-consuming operations such as manually processing emails, keeping track of everything through multiple spreadsheets, and missing out on sales due to the inability to adjust costs post-shipping of goods ordered. In turn, consumers and wholesalers are able to streamline their sales orders and the brand has been able to predict the necessary quantities of items needed to run their business successfully. Stitch has seen this significantly improve the workflow in cosmetic brands, but also in apparel brands and beyond. Here’s to efficient workflows and freeing up time to work on growing the brand in other ways!

Want to learn more about Stitch and how it can help your brand grow? Click here to learn more, or request a demo today.

Emma Miller-Crimm

Marketing at Stitch Labs
Emma lives in the Bay Area, and does Content Marketing for Stitch Labs. She believes in providing information brands can use to visualize themselves before they invest in their operations, and loves helping brands in their growth journey. She is especially passionate about sustainable fashion and hopes her content helps brands realize their full potential.

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