How to Never Miss Retailer P.O. Acknowledgement Expectations

by | Dec 9, 2020 | Automation, Compliance, Order Management, Suppliers

Purchase order acknowledgements, also known as EDI 855 documents, communicate your intent to fulfill an order to a retail customer. Retailer expectations for lightning-fast purchase order acknowledgements can be daunting, but the latest automation technology makes the process much easier. 

E-commerce accelerates the need for rapid purchase order acknowledgements

Requirements for sending the purchase order acknowledgement can be as fast as 30 minutes, but typically range between 12 and 24 hours. And orders can arrive at any time, sometimes requiring a response in the middle of the night.

The need for timely purchase order acknowledgements has never been greater. With the growth of e-commerce fulfillment methods like drop shipping, consumers expect rapid order fulfillment. In turn, retailers expect their suppliers to quickly acknowledge orders so they can meet consumer demands. 

How SPS Fulfillment streamlines the process

SPS Commerce Fulfillment is a full-service EDI solution that makes it easier and faster to meet retailer requirements for purchase order acknowledgements. Here are four benefits of automating the purchase order acknowledgement process with Fulfillment:

1. Save time

When you receive a new order, Fulfillment can automatically send a purchase order acknowledgement using the product’s “auto send” feature. This eliminates the need to create and send an acknowledgement in response to the order, and can shave hours from your order processing time.

2. Never miss out on orders

If you can’t acknowledge an order quickly enough, you run the risk of missing out on the order. Your retailer might even cancel the order and send it to another supplier. Eliminate this risk by using the automation features within Fulfillment.

3. Avoid chargebacks

Lack of compliance with a purchase order acknowledgment requirement is one of the most common reasons to incur a chargeback. These chargebacks can be steep, with some retailers charging suppliers 10 percent of the order value for a missed acknowledgement.

4. Strengthen retailer relationships

Most importantly, by sharpening your responsiveness, you can build strong partnerships with your retail customers. If a retailer knows that you reliably meet all of their requirements, they will be more likely to send more orders your way.

Want to streamline your purchase order acknowledgments? Talk to an SPS expert to learn how SPS Fulfillment can help boost efficiency and satisfy your customers.

Megan Brang

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