Order processing, simplified: A guide for procurement teams

Order processing can be a frustrating part of the procurement process, as it has potential bottlenecks and inefficiencies. These issues can stem from using manual processes, spending days (or weeks) chasing down approvals, or lacking visibility into inventory levels and order statuses. 

Despite these challenges, order processing is a vital component of procurement and overall success for many organizations. As technology continues to evolve, introducing automation and tracking systems can eliminate common problems and speed up the process.

What is order processing?

Order processing in procurement is the series of steps you and your supplier take to accept, manage, and fulfill orders. The process starts when your supplier receives and confirms an order for goods or services and ends with final delivery and payment.

It also includes all the internal and external steps in between, such as:

• Updating inventory levels

• Order picking, packing, and shipping at a fulfillment center

• Tracking order status and estimated delivery timelines

• Processing invoices and payments

• Facilitating returns when necessary

   

Common challenges in order processing

While order processing may sound simple, it has a lot of moving parts that can make it prone to delays. Common day-to-day purchasing challenges include the following.

Manual data entry errors

When buyers manually enter order details—including item quantities, pricing, or shipping addresses—into order processing systems, they introduce the risk of human error. Inputting data incorrectly can not only mess up your entire order, but it can also interfere with real-time inventory management, budget forecasting, and financial decision-making.

Delayed approvals

Many organizations require order approvals before order processing to verify that purchases align with company policies and strategic goals. This can lead to lengthy internal delays before orders can move forward.

Lack of integration between systems

Some organizations use specialized software to manage different parts of the order management process. For example, your organization may have purchase order software, a warehouse management system, and a payment processing system—all of which operate independently. A lack of system integration can lead to data silos and make order tracking more difficult.

Limited visibility into order status

If you don’t have an automated purchase order tracking system, you probably manually monitor orders via supplier portals or direct supplier communication. This approach limits real-time visibility and makes it harder to know if your order is still on schedule.

The benefits of efficient order processing

Efficient order processing helps you eliminate common pain points like delays and manual errors while delivering the following benefits.

Improved buyer satisfaction

Smooth order processing means efficient approval workflows, timely communication, and on-time deliveries from suppliers. It helps ensure you receive the goods and services you need when you need them without unnecessary delays.

You can speed up the approval process using automation. For example, Amazon Business offers an Approvals tool that automatically routes POs to the correct approvers. The approvers receive notifications to review each request and follow-up reminders when they haven’t responded within a few days. If they're out of office, they can designate someone else to approve POs to ensure orders stay on track.

Enhanced operational efficiency

Procurement is directly tied to operational efficiency. Order processing software that digitizes manual processes is one of the most effective ways to improve it.

Aside from streamlining approvals, these solutions can manage tasks like:

• Creating purchase orders

• Processing invoices

• Tracking supplier performance data

• Analyzing spending patterns

• Optimizing inventory levels to help prevent stockouts

   

Competitive advantage through faster fulfillment

Streamlined order fulfillment can also speed up the  processing time of your orders when you’re reselling, which can be a major differentiator. Centralized e-procurement solutions streamline workflows by housing the tools you need under the same roof. 

You can also use solutions that integrate with your procurement system to share data. For example, Amazon Business isn’t a standalone e-procurement solution, but it integrates with more than 300 systems to help simplify and customize your purchasing process.

Optimized supply chain management

Efficient order processing helps optimize your supply chain, reducing your operational costs and improving your organization's agility. Greater visibility over the entire process can help you identify blockages or areas for improvement.

6 steps to successful order processing

Enhancing your order processing may sound easier said than done, but it doesn’t have to be—especially with the right tools and technology. Here are six practical steps you can take to streamline your order fulfillment process.

1. Order entry and validation

Mistakes can happen in manual systems. Since this is the first step in the process, it’s crucial to make sure you’re inputting your data correctly. 

If you’re a manufacturer or reseller, you can use automation for repetitive tasks like data entry, shipping label creation, and inventory tracking to help ensure accuracy. According to a 2025 report by Keelvar, procurement teams that have adopted automation report spending 60 percent less time on repetitive tasks and experience a 56 percent decrease in their risk of errors. 

Beyond automation, another critical step is implementing a solution that consolidates your data into one centralized order management system so the same information is accessible to all teams. 

For order validation, you can further improve accuracy by comparing order details against master data, such as customer information and product availability. Tools like Amazon Business’ Business Order Information (BOI) feature help simplify financial reconciliation by collecting critical order information. 

Amazon Business also uses an automated 3-Way Match solution that verifies order information by comparing data from purchase orders, invoices, and packaging or receiving slips.

2. Payment processing

Manual errors and delays can also be problematic in payment processing. To speed up this step, you can automate tasks like sending payment confirmations, checking to see if payments are fraudulent, and generating invoices. You can also automate bank reconciliations and subscription payments.

To improve your customer experience, it’s best practice to offer multiple payment methods. This could include paying by debit or credit card or through digital wallets. You can also try alternative methods, such as Amazon Business’ Pay by Invoice feature, which gives your customers 30 days to pay off their purchase. Amazon Business Prime members can get even more time to pay.

3. Inventory management

Incorrect stock levels can lead to problems like overstocking, inaccurate demand forecasting, and unnecessary order volumes that tie up capital. Inventory tracking tools help procurement teams monitor stock levels in real time, ensuring the right products are available to support internal operations and project timelines.

Proper inventory management can also help you implement strategic ordering and stocking practices that optimize spend and prevent stockouts.

4. Picking and packing

If you’re reselling the items you procure or making them into new products, you’ll need visibility into your inventory and warehouses. Without it, you won’t be able to set up layout and packing strategies to improve warehouse ergonomics. Using automation ensures a more efficient layout and makes it easier to adjust strategies for changes in demand due to seasonality. 

Automation can also help with the packing process by ensuring packing materials are readily available and using barcode scanners for accurate inventory tracking.

5. Shipping and delivery

Choosing reliable shipping and logistics partners is a key part of supplier selection. According to IBISWorld, there were nearly 73,000 third-party logistics businesses in the US last year, and that number is growing. 

Once you’ve picked a supplier, tracking their performance on metrics like on-time delivery rates, accurate order fulfillment, compliance, and more is critical. Many procurement solutions automatically capture and compare this data to help you ensure you’re always using the best partners.

6. Order tracking

Consistently having to log in to a supplier portal or message your suppliers for order status updates can be tedious and inefficient. Automated order processing solutions can integrate with shipping carriers to help you track packages directly without going through your supplier.

Strategies to improve order processing

Order processing is always a work in progress, meaning there will always be new ways to improve your operations and save money. Here are a few high-level things you can do to make a huge impact.

Implement automation tools

Automate your order processing workflow as much as possible, from PO creation and approval to final reconciliation and payment. The more you automate, the lower the risk of human error. Fewer human interventions also free up your staff to do higher-value work, such as negotiating with suppliers or managing relationships.

If you have recurring orders, you can also set up automated reorders. Or, you can take it a step further and offload your inventory management entirely with tools like Amazon Business Restock, which offers replenishment services by tracking your inventory for you at different worksites. 

Integrate systems

Even if you implement centralized e-procurement software, you’ll likely still have gaps in the features you want. This is where integrated solutions come in handy. 

For example, if your software doesn’t allow you to set purchase controls for company spend, such as limiting which categories or suppliers employees can buy from, you could integrate with Amazon Business to take advantage of its Guided Buying feature. This integration would fill that desired gap.

Amazon Business also enables you to create blanket purchase orders (BPOs) to set specific budgets for different buying groups within your organization.

Enhance visibility

Visibility is key. You need reliable, constant insight into your spending, order statuses, inventory levels, and more. Fortunately, many of the tools that help automate your business processes also come with built-in analytics tools.

Amazon Business, for example, offers Spend Visibility (a Business Prime feature), which lets you visualize purchasing trends, supplier data, and areas for cost savings using artificial intelligence (AI). This data can help you make smarter purchasing decisions for better budget utilization.

Streamline approval workflows

Letting POs get hung up in inboxes because of approvals is inefficient. Automated approval workflows eliminate the need for manual follow-up and make it easier for approvers to provide feedback or edits—no phone tag required.

Smarter order processing starts here

Order processing can be frustrating, but common issues are solvable, and small changes can drive big wins. With technology at the center of your strategy, you can save time, budget, and human resources by allocating them elsewhere. 

Think of Amazon Business as your behind-the-scenes enabler of more seamless order processing. The smart business buying solution empowers administrators like you by simplifying the purchasing process so you can operate more efficiently and effectively.