Updating & Managing Purchase Orders
Things change. Suppliers delay. Quantities need adjustment. Here's how to manage PO changes.
When to Update a PO
Common triggers for updates:
1. Sales surge (need more inventory than calculated)
└─ Action: Increase quantity
2. Demand drops (ordered too much)
└─ Action: Reduce quantity or cancel
3. Supplier delay (can't make original date)
└─ Action: Confirm new date, adjust forecast
4. Warehouse location changed
└─ Action: Update delivery address
5. Exchange rate moved significantly
└─ Action: Negotiate revised payment terms
6. Supplier requests changes
└─ Action: Confirm with your team, approve
Update Before Sending (Easy)
Status: DRAFT or APPROVED (not yet SENT)
You can change anything:
✓ Supplier (switch to different supplier)
✓ Quantity (10 units → 20 units)
✓ Product (remove, replace, add new)
✓ Unit price (negotiated lower price)
✓ Delivery date (pushed back)
✓ Delivery address (different warehouse)
✓ Payment terms (NET 30 → NET 60)
✓ Currency (EUR → USD)
✓ Payment currency
How to update:
Step 1: Find PO
├─ Go to Purchase Orders
├─ Filter by status: DRAFT
├─ Find your PO
Step 2: Click [Edit]
├─ Status changes to: DRAFT
└─ Ready to modify
Step 3: Make changes
├─ Change quantity: 240 → 300 units
├─ Update delivery date: Sept 30 → Oct 15
├─ Adjust currency: EUR → USD (negotiate with supplier)
└─ Etc.
Step 4: Click [Save]
├─ Changes saved
└─ Still in DRAFT (not sent yet)
Step 5: Approve & Send
├─ When ready, click [Approve]
├─ Then [Send to Supplier]
└─ Now it's SENT (harder to change)
Update After Sending (Complex)
Status: SENT (supplier has received)
What you CAN change:
Limited changes (requires supplier approval):
✓ Delivery date (push back delivery)
✓ Delivery address (same warehouse, but different building?)
✓ Payment terms (NET 30 → NET 60)
What you CANNOT easily change:
Cannot change without rework:
❌ Quantity (already in production)
❌ Unit price (already calculated)
❌ Currency (invoice already issued)
❌ Product (already manufactured)
How to update after sending:
Option A: Amendment (preferred)
├─ Click: [Request Amendment]
├─ Select what changed: "Delivery date"
├─ New date: October 15
├─ Message to supplier: "Can we push delivery from Sept 30 to Oct 15?
│ We have slow sales this month."
├─ Click: [Send Amendment Request]
└─ Supplier confirms or declines
Option B: Cancel & Create New
├─ Click: [Request Cancellation]
├─ Message: "We need to reduce order to 150 units
│ (was 240). Can you cancel the 90 units?"
├─ Wait for supplier approval
├─ If approved: Create new PO for correct qty
└─ Use: When change is substantial
Option C: Accept & Do Nothing
├─ Supplier has already started production
├─ Change would cost them money
├─ Accept original terms
└─ Use: When change is minor, delivery is close
Partial Changes: Splitting a PO
Scenario: You ordered 240 units, but only need 150 now
Option 1: Reduce current PO
├─ Amendment: Reduce from 240 → 150 units
├─ Supplier: "OK, we'll only produce 150"
└─ Simple, clean
Option 2: Split the PO (phased delivery)
├─ Keep: 240 units total
├─ Shipment 1: 150 units (Sept 30)
├─ Shipment 2: 90 units (Oct 30, delayed)
├─ Why: You get stock sooner, pay for rest later
└─ Amendment: "Can you ship 150 now, 90 in 30 days?"
Option 3: Cancel partial
├─ Amendment: "Cancel 90 units from original 240"
├─ Proceed with: 150 units
└─ May incur cancellation fee (negotiate)
Canceling a PO
Scenarios for cancellation:
1. Inventory situation changed
├─ Demand dropped significantly
├─ Already overstocked
└─ Don't want goods anymore
2. Supplier quality issues
├─ Previous shipment had defects
├─ Lost confidence in supplier
└─ Want to cancel before more arrive
3. Financial constraints
├─ Cash flow problem
├─ Can't afford to receive & pay for goods
└─ Need to cancel
4. Supplier failure
├─ Supplier bankrupt or closing
├─ Can't fulfill order
└─ Forced cancellation
How to cancel:
Step 1: Full cancellation
├─ Click: [Cancel PO]
├─ Status changes to: CANCELLED
└─ Synplex removes from commitments
Step 2: Partial cancellation
├─ Amendment: "Cancel 90 of 240 units"
├─ Supplier: Confirms cancellation
├─ Synplex updates: 150 units ordered (90 removed)
└─ Proceed with partial shipment
Step 3: Notify supplier
├─ Formal communication
├─ Reason: "We need to cancel due to inventory buildup"
├─ Timing: ASAP (before production)
└─ Payment: Check if cancellation fees apply
Step 4: Confirm in Synplex
├─ Status: CANCELLED
├─ Inventory forecast updated (goods won't arrive)
└─ Back to Running Low status? (Replan)
Cancellation costs:
Before production starts:
├─ Free cancellation (supplier hasn't spent)
└─ Timely: Cancel ASAP
During production:
├─ Partial fee (supplier incurred costs)
├─ Negotiate: "We'll pay 20% of order"
└─ Still cheaper than receiving unwanted goods
After shipment:
├─ Accept delivery, arrange return/restocking
├─ Or accept the goods (least bad option)
└─ Future: Don't use this supplier
Always check: Lead time
├─ 30 days from now? Easy cancellation
├─ Production started? Harder
├─ Already shipped? Accept it
Monitoring PO Status
After PO is SENT:
What to track:
1. Status
├─ SENT: Waiting for supplier confirmation
├─ CONFIRMED: Supplier accepted order
├─ IN PRODUCTION: Supplier is making goods
├─ SHIPPED: Left supplier warehouse
├─ IN TRANSIT: On the way to you
├─ DELIVERED: Arrived at your warehouse
└─ RECEIVED: You've processed it
2. Expected vs. Actual dates
├─ Expected delivery: September 30
├─ Actual arrival: October 5 (5 days late)
├─ Alert: Delay detected
└─ Action: Check stock gap risk
3. Tracking number
├─ Carrier: DHL, UPS, FedEx, etc.
├─ Number: ABC123456789
└─ Monitor: Real-time tracking on carrier site
4. Quantity integrity
├─ Expected: 240 units
├─ Arrived: 238 units (2 missing)
├─ Alert: Discrepancy
└─ Action: Contact supplier
Communication During PO Lifecycle
Before Sending
Email: Supplier quote
"We need Winter Jacket @ €45/unit, delivery Sept 30, NET 30 terms"
Supplier: Confirms
"Yes, we can do that. Lead time 45 days, minimum order 100 units."
You: Create & send PO
After Sending (Before Delivery)
Email: Status check (week 2)
"Hi, confirming receipt of PO-2024-001 for 145 Winter Jackets.
Can you confirm production timeline?"
Supplier: Confirms
"Production started, expected ship Aug 25, delivery Sept 30."
You: In Synplex, update PO status to "IN PRODUCTION"
Approaching Delivery Date
Email: Shipping confirmation (week 3)
"PO-2024-001 has shipped via DHL.
Tracking #ABC123456789, expected delivery Sept 30."
You: In Synplex, update status to "SHIPPED"
Add tracking number to PO
Monitor carrier tracking
Issue? Delay detected?
Email: "Tracking shows delivery Oct 5, not Sept 30.
Stock gap risk. Can you expedite?"
After Delivery
Goods arrive at warehouse
You: Mark as received in Synplex
├─ Status: DELIVERED
├─ Verify: 145 units in good condition ✓
└─ Inventory updated: +145 units
Email: Invoice arrives from supplier
You: Match 3-way (PO, receipt, invoice)
├─ PO: 145 units @ €45 = €6,525 ✓
├─ Receipt: 145 units received ✓
├─ Invoice: €6,525 ✓
└─ All match: Process payment
Common Post-Send Changes
Change 1: Delivery Date Delay
Scenario: Supplier can't meet Sept 30 delivery
Supplier emails: "Production delayed, can only deliver Oct 15"
Your action:
├─ Check stock: Do you have enough until Oct 15?
├─ If yes: Accept delay
├─ If no: Stock gap risk!
│ └─ Consider: Emergency order from secondary supplier
Amendment process:
├─ Click: [Request Amendment]
├─ Field: Expected delivery date
├─ New date: October 15
├─ Message: "We can work with Oct 15 if confirmed"
├─ Synplex updates forecast
└─ Status: AMENDED (new date locked)
Post-amendment:
├─ Update your inventory plan
├─ If stock gap risk: Create emergency PO
└─ See File 07 (Troubleshooting) for stock gap
Change 2: Quantity Increase (Demand surge)
Scenario: Winter Jacket sales spike, need more
Your situation:
├─ Original: 145 units ordered
├─ Current inventory: 80 units
├─ Daily sales: Increased to 8 units/day (was 5)
├─ Will run out: In 10 days (80 ÷ 8)
└─ Problem: Original shipment in 30 days (too late!)
Option A: Amendment to increase qty
├─ Contact supplier: "Can we increase to 200 units?"
├─ Supplier: "Maybe, costs will go up"
├─ You: Calculate: Worth it to avoid stockout?
├─ Decision: Yes, increase to 200
├─ Amendment: Request increase
└─ Risk: Supplier may not be able to do it (already in production)
Option B: Create separate emergency order
├─ Don't amend original
├─ Create new PO with secondary supplier
├─ Faster lead time (15 days instead of 30)
├─ Higher cost (expedite fee)
├─ Arrives sooner: Bridge the gap
└─ Original arrives later: Restock
Recommended: Option B (split approach)
├─ Original PO: 145 units, Oct 15 (expected)
├─ Emergency PO: 100 units, Sept 20 (fast supplier)
├─ Total: 245 units (enough to cover demand)
Change 3: Quantity Decrease (Overstock)
Scenario: Demand lower than forecast, inventory building up
Your situation:
├─ Original: 240 units ordered
├─ Current inventory: 450 units (below overstocked limit of 600)
├─ Daily sales: Decreased to 6 units/day (was 10)
├─ Days of inventory: 75 days (450 ÷ 6)
├─ Status: Approaching OVERSTOCKED
└─ Action: Don't receive more goods yet!
Amendment process:
├─ Contact supplier: "Can we reduce from 240 → 150?"
├─ Supplier: "We're already in production. Cost to reduce?"
├─ Option 1: Reduce, pay €100 fee (worth it)
├─ Option 2: Accept 240, take extra inventory
├─ Option 3: Split: 150 now, 90 in 2 months
├─ Decision: Go with Option 3 (phased delivery)
Amendment:
├─ Original: 240 units, Sept 30
├─ Amended to: Shipment 1: 150 units (Sept 30)
│ Shipment 2: 90 units (Nov 30)
├─ Click: [Request Amendment]
├─ Message: "Split shipment: 150 now, 90 in 2 months"
└─ Supplier confirms
Change 4: Supplier Delivery Issue
Scenario: Supplier says will be 10 days late
You have three choices:
Option A: Accept the delay
├─ Check: Will you run out of stock?
├─ If yes: Create emergency order (See Option B below)
├─ If no: Accept delay, save supplier relationship
└─ Amendment: Confirm new date (Oct 10)
Option B: Get inventory from elsewhere
├─ Create emergency PO with secondary supplier
├─ Faster shipment to cover the gap
├─ Higher costs (expedite fee)
├─ Arrive in 2 weeks, original in 4 weeks
└─ Both shipments arrive, stock peaks (temporary overstocking)
Option C: Cancel and use different supplier
├─ Cancel current PO (may have fees)
├─ Find fast supplier (3-5 day delivery)
├─ Higher cost, but urgent
└─ Use: Only if current supplier is unreliable
Recommended: Option B (two-supplier approach)
├─ Original supplier: Oct 10 (original deal)
├─ Emergency supplier: Sept 25 (bridge the gap)
└─ Combined: No stockout, maintain relationships
FAQ
Q: Can I change the supplier after sending a PO?
A: Not without canceling. Once sent, it's with that supplier. If you need different supplier: cancel this PO, create new one with different supplier.
Q: What if supplier doesn't respond to my amendment request?
A: Follow up after 3 days. Escalate to supplier manager. If critical: prepare to cancel and reorder from secondary supplier.
Q: Can I reduce price after sending (if market rates dropped)?
A: You can ask, but supplier may say no (they already quoted). Use for future negotiation: "For next order, can we lock in lower price?"
Q: What if I need to change payment terms after sending?
A: Usually acceptable (NET 30 → NET 60). Send amendment, supplier usually agrees (affects cash not goods). Confirm before assuming.
Q: How long can I hold a DRAFT PO before sending?
A: As long as you want. But once you need the goods: send it immediately. Lead time starts when SENT, not when DRAFTED.
Next Steps
- Create your first PO (File 01)
- Send it to supplier (don't hold it in DRAFT)
- Monitor for issues (will they deliver on time?)
- Use this file when you need to change it
Related
Questions? Contact support@synplex.io