Free lesson · 10 minute read · Reseller Growth Systems
Purchase Orders and Reorder Decisions
Move from reactive buying to documented purchasing decisions with quantity, price, timing, and approval.
Your goal
Understand when a simple purchase order/reorder workflow becomes useful.
When to use
Use with repeat suppliers, bulk purchases, or any order with multiple units and delivery expectations.
Why this matters
As volume grows, verbal or message-only purchasing creates quantity, pricing, delivery, and accountability errors.
The lesson
A purchase order is simply a documented statement of what you intend to buy: item, quantity, price, delivery terms, and supplier.
Small local flips may not need formal POs. Once you buy repeatedly from suppliers, the structure becomes useful because it separates recommendation from commitment.
A healthy workflow might be: identify need → calculate quantity → choose supplier → draft order → review economics → send → supplier accepts/counters → buyer approves → purchase confirmed → shipment received → inventory verified.
The reorder quantity should come from demand and exposure limits, not from the supplier's minimum or enthusiasm. Consider current stock, reserved units, average weekly sales, expected delivery time, and cash available.
Record supplier counteroffers instead of losing them in messages. If terms change, review the economics again before approving.
When the shipment arrives, the purchase order is not finished until received units are verified against what was ordered.
Worked example
You sell roughly three iPads per week and have two in stock. Supplier lead time is one week. Buying ten may feel efficient, but your exposure rule might cap the order at five. Document five units at the agreed price, expected delivery date, and required condition.
Practical checklist
- Need identified
- Quantity justified
- Supplier chosen
- Price/terms written
- Approval before commitment
- Counteroffers recorded
- Delivery tracked
- Received units verified
Common mistakes
- Ordering based on discount alone
- Treating supplier acceptance as final inventory
- Ignoring changed counteroffer economics
- Skipping receiving verification
Key takeaways
- POs document intent and changes
- Reorder quantity should reflect demand plus exposure
- Receiving closes the loop
Put this into practice
Create a simple one-page purchase order template and use it for your next multi-unit buy.
Before you finish
You can see what was ordered, what changed, and what was actually received.
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