Future of Commerce Blog

Purchase Orders: Key to Good Inventory Management


Good inventory management is key to running a product-based business. When it comes to inventory, you need to be able to answer:

  • How many of each product do you have?

  • How much did each unit cost?

  • How many units are you waiting to receive into your inventory?

  • How many units have you sold?

  • How many units do I need to purchase?

Purchase Orders: A key component of good inventory management

Keep track of inventory from the moment it’s ordered from the supplier to the moment it is delivered to your customer. Create purchase orders and share them with your suppliers directly from within Stitch. With purchase orders, Stitch becomes an even more robust inventory management suite.

Quickly and accurately answer these 3 important questions about your business — how many units am I waiting to receive, how many units do I need to purchase, and how much did each unit cost me.


Grow Profitably: Focus on detailed insights into your costs, not calculations

To grow your business profitably, it’s critical to know exactly how much each product costs. Stitch gives you detailed insight into how much you spend as well as information on your inventory assets and COGS.

Focus on insights into your business, not the time to calculate each metric. Let Stitch handle the calculations for you. Stitch uses a sophisticated average unit costing algorithm, to automatically calculate the cost of every product in your inventory, accurate to the second.

Avoid Lost Sales: Know what, how many and when your stock will arrive

Have you ever had a customer order an out of stock product? If you’re like most product-based businesses, you have. Inevitably, the customer asks, “When will you have more?”

Answer this question quickly and accurately with purchase orders. Know how many units of each product are awaiting arrival into your inventory and when you expect them to arrive.

Increase Sales & Revenue: Sell your products the instant you receive them

Cut down out-of-stock time and can increase your sales revenue. When inventory is received, you still have to update all of your sales channels, such as Amazon, Shopify, BigCommerce, with how much stock you have.

Stitch’s purchase order feature is tied directly to your integrated sales channels, so the moment you receive new stock, all of your sales channels are automatically updated and your products are listed for sale.

Plus, you save time since you do not need to update each sales channel separately.

Manage supplier relations: Get the stock you need, when you need it

Know the difference between what you ordered, and what you actually received from a supplier.

Take control when you receive too few units to ensure you get the stock you need, when you need it.

  • Need the inventory now? Partially receive inventory and backorder inventory you are still waiting to receive.

Suppose you ordered 100 units of a product, but only received 90. Perhaps FedEx loses a box of your products for a week or a supplier delivers your order in multiple shipments.

In Stitch, you can backorder those items so you know how many units you are still waiting to receive, and when you finally receive them. This makes it easy to follow-up with suppliers to make sure you get the stock you need, when you need it.

  • Need the right amount of stock delivered the first time? Quickly see which suppliers consistently deliver less than you ordered.

Know which suppliers consistently short you and make intelligent purchase order decisions in the future.

Suppose each time you order 100 units, you are shorted by 10 units. For the busy holiday season, you know you need 200 units. Now, you know to order 220 units — 10% more — so you ensure you receive the 200 units you need.

What’s Next?

Take the guesswork of how many of each product to order off your shoulders, and let Stitch do the heavy lifting for you. In the future Stitch will give you the ability to auto-generate purchase orders with predictive stock quantities, using our business intelligence and key insights.


Find your best selling products today.
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Bridge Mellichamp

Bridge Mellichamp is the Director of Data Science and Special Projects. Numbers excite her more than you can imagine; at the core, she’s driven by helping Stitch and its customers make sense of their data so they can make incredibly smart business decisions.In her free time, she enjoys winning at booking flights, sand in her toes at Ocean Beach, and escapes to Tahoe.

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