Skip to content

HomeAutomatic purchase order creation based on inventory levelsSupplier & Procurement AutomationAutomatic purchase order creation based on inventory levels

Automatic purchase order creation based on inventory levels

Purpose

1. Enables automatic generation and dispatch of purchase orders to suppliers when inventory of any agricultural product falls below predefined thresholds, eliminating manual monitoring and ensuring continuous stock for wholesale operations.

2. Reduces risk of stockouts, streamlines replenishment, and enhances supplier relationships through timely, data-driven procurement actions, maintaining consistency and reliability in supply chain management.

3. Integrates inventory systems with procurement and communication tools to automate end-to-end reorder cycle, including notification, order creation, approval routing, and supplier dispatch.


Trigger Conditions

1. Inventory level for a specified product or SKU falls below a predefined minimum quantity.

2. Scheduled inventory check identifies forecasted shortfall based on historical consumption rates.

3. Supplier lead time exceeds remaining stock cover period, or safety stock threshold is reached.

4. Critical product flagged as at risk of disruption or per customer standing-order contract requirements.


Platform Variants


1. SAP Business One

  • Feature/Setting: Use Inventory Management API (`Service Layer: InventoryCounting`); Triggered by "Minimum Stock Level Breach" alert; Configure scheduled API workflows to create draft Purchase Orders.

2. Microsoft Dynamics 365 Supply Chain

  • Feature/Setting: Supply Chain Management "Automatic Replenishment" rule with Power Automate; Configure "When inventory falls below threshold" trigger flow to create new Purchase Order record.

3. Oracle NetSuite

  • Feature/Setting: Saved Search for low stock; SuiteScript RESTlet endpoint for Purchase Order creation; Schedule script and set to run on identified inventory events.

4. SAP S/4HANA

  • Feature/Setting: Material Management (MM) Automatic Reorder; Configure "MRP Type" for reorder and trigger `BAPI_PO_CREATE1` for PO generation.

5. Zoho Inventory

  • Feature/Setting: Workflow Rules on Items; "Trigger Purchase Order" action with inventory threshold condition; Use Zoho Flow for additional automation.

6. QuickBooks Online

  • Feature/Setting: Inventory Alerts via API; use QuickBooks API `POST /purchaseorder` endpoint if threshold condition met.

7. Odoo

  • Feature/Setting: Automated Actions in Inventory; `Reordering Rules` set per product; Procurement rule triggers Purchase Order when minimum stock hit.

8. Sage Intacct

  • Feature/Setting: Inventory Control notification rule; Use Smart Rules to send purchase order data via REST API when triggered.

9. Xero

  • Feature/Setting: Inventory tracking triggers webhook; Create Purchase Order via `POST PurchaseOrders` API endpoint.

10. TradeGecko (QuickBooks Commerce)

  • Feature/Setting: Low Stock Notification workflow; API endpoint `/purchase_orders/create` used with real-time triggers.

11. Shopify

  • Feature/Setting: Shopify Flow "Inventory below threshold" trigger with webhook to external PO management tools.

12. Fishbowl Inventory

  • Feature/Setting: Reorder Points Automation Module; Schedule reorder report and use API to place PO automatically.

13. Unleashed Software

  • Feature/Setting: "Minimum Stock Level Alert"; "Create Purchase Order" via API integration for instant supplier order.

14. Cin7

  • Feature/Setting: Auto-Purchase Order setup using Inventory Level triggers; Connect via Cin7 API to generate PO.

15. Epicor ERP

  • Feature/Setting: "Inventory Replenishment" configuration with BPM workflow to auto-create Purchase Order using system process.

16. Infor CloudSuite Industrial (SyteLine)

  • Feature/Setting: Inventory Management reorder rules; Use "Event Management Workflow" to auto-create and dispatch PO.

17. Vend

  • Feature/Setting: Low inventory reporting; use API webhook to external service to trigger purchase order request.

18. Dear Systems

  • Feature/Setting: Reorder Level workflow; "Auto Purchase Order" action via Dear Systems API when level breached.

19. Katana MRP

  • Feature/Setting: Auto Reorder Points; "Create Purchase Order" API trigger for manufacturing/agro SKUs.

20. Brightpearl

  • Feature/Setting: Low inventory workflow rule; "Create Purchase Order" API endpoint scheduled via Brightpearl Automation app.

21. Oracle Fusion Cloud Procurement

  • Feature/Setting: "Self-Service Procurement" with automated reorder configurator and `PurchaseOrderService` API.

22. Magento Commerce

  • Feature/Setting: Custom webhooks on inventory; "Auto-generate Purchase Order" plugin or API integration.

Benefits

1. Eliminates manual stock-checking and reduces human error in the procurement process.

2. Ensures proactive replenishment, minimizing risk of disruptions and lost wholesale revenue.

3. Speeds up procurement cycle, improving supplier relations and operational efficiency.

4. Provides audit trail and compliance with procurement workflows and approval hierarchies.

5. Supports multi-supplier strategies, price comparison, and automated vendor selection for cost control.

Leave a Reply

Your email address will not be published. Required fields are marked *