Our client, a leading manufacturing company in the US, faced increasing challenges in managing supplier responses, updating PO records, and ensuring real-time data in their ERP system. Because supplier communications remained unstructured and scattered across PDFs, emails, free text, Excel files, and scanned documents, the lack of automation led to:

• Procurement teams struggling to efficiently manage supplier agreements and contract terms.

• Supply managers facing delays in tracking confirmed orders, deliveries, and escalations for unconfirmed POs.

• Accounts payable encountering difficulties in reconciling invoices with purchase orders and delivery records.

• Operations teams lacking real-time visibility into order status, leading to missed delivery commitments and customer dissatisfaction.

Managing order confirmations & unconfirmed orders

Suppliers responded to POs using different formats (PDFs, Excel, emails, scanned docs), making it difficult to track confirmations. Unconfirmed POs created bottlenecks, forcing supply managers to manually follow up and ensure supplier commitments. Without a centralized confirmation process, errors led to mismatches between supplier commitments and our client’s delivery promises – risking stockouts and unfulfilled customer orders.

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Handling open orders & delivery changes

After confirmation, POs became Open Orders in the ER, but tracking delivery changes (dates, quantities, partial shipments) was manual and fragmented. Suppliers often communicated delivery adjustments via emails or separate docs, making it hard for supply managers to assess their impact on inventory and customer orders. Procurement and supply managers had to manually approve or adjust ERP entries, leading to delays, misaligned inventory, and missed customer deadlines.

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Tracking bills of lading (BOLs) & delivery notes (DNs)

Without automation, bills of lading were often mismanaged, delaying warehouse and production processing. DNs were checked manually against open orders and order confirmations, leading to delays in identifying missing or incorrect deliveries. Warehouse and Quality Assurance teams had to cross-reference multiple systems and documents, increasing the risk of shipping incorrect or non-compliant goods to customers.

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Invoice payment & reconciliation bottlenecks

Invoices arrived before or after deliveries, making it difficult for accounts payable to validate them against Pos, order confirmations, and delivery records. Manual invoice reconciliation led to financial mismatches, payment delays, and compliance risks. Incorrect payments or delayed supplier settlements risked supply chain disruptions that ultimately affected the client’s ability to fulfil customer orders.

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Limited contract compliance monitoring

Reviewing supplier performance against contract terms and order confirmations was sporadic and reactive, often only checked during major discrepancies or annual audits.

To automate PO maintenance, supplier coordination, and financial reconciliation, Nordoon deployed AI Agents to optimize every stage of the PO lifecycle.

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Automated PO maintenance

AI Agents automatically processed PO numbers, SKU codes, quantities, dates, and prices from supplier responses - regardless of format (PDF, Excel, scanned documents). Supplier SKUs were mapped to internal material IDs and validated data before updating the ERP via RPA (Robotic Process Automation). The Agents handled ambiguous or missing data by automatically requesting clarifications from suppliers, reducing the need for employees to intervene. They tracked unconfirmed orders, triggering automated follow-ups with suppliers and escalating issues to supply managers only when necessary. Our solution ensured real-time ERP updates, improving supplier commitment tracking and enabling customer-facing teams to work with accurate delivery data.

Human involvement: Only required when supplier responses remained unclear after AI-driven validation attempts. Easily resolved through Nordoon’s confirmation screens.

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Streamlined delivery change management

AI Agents monitored supplier emails and documents for delivery changes, processing updates without manual intervention. When suppliers communicated changes, the agents automatically updated open orders in the ERP, ensuring inventory planning reflected accurate delivery schedules. They escalated major discrepancies like supplier delays or incorrect quantities to supply chain managers for resolution. They ensured that customer-facing teams had accurate, real-time order data to set proper expectations.

Human involvement: Focused only on high-impact decisions, while the AI Agents handled routine tracking and updates.

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Continuous contract compliance monitoring

AI Agents conducted real-time audits of supplier performance against contract terms. They tracked on-time delivery rates, quality compliance, and pricing adherence, flagging deviations for procurement review. They also did performance reports that enabled procurement teams to renegotiate terms, based on accurate, up-to-date insights.

Human involvement: Procurement teams only intervened to act on contract deviations or renegotiate terms.

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Scalable supplier management

Using Nordoon’s agentic framework, the customer scaled from handling 20 suppliers to managing 500+ suppliers without increasing headcount. Our solution helped the client verify contract compliance at every stage of the PO cycle, ensuring supplier coordination and financial reconciliation. Due to the automation implemented at every stage of the PO flow, the on-time, in-full delivery rates have improved, directly impacting customer satisfaction and retention. The AI Agents facilitated seamless communication, processed order confirmations, maintaining compliance at every state of the PO cycle.

Human involvement: Procurement teams could focus on strategic supplier management instead of manual data processing.

Over 90% - reduction in manual PO maintenance time

500+ suppliers - managed without additional resources

Real-time ERP updates - improving procurement and supply chain coordination

Over 90% - reduction in manual PO maintenance time