When a product offers automated purchase orders it means one of two things, and the difference matters commercially. Either orders raise themselves against agreed prices and stock levels with no human involvement, or a person still decides what to buy and the software removes the typing, routing and chasing. Most spend falls in the second case.
The self-raising order
Stock below a level, contracted price, known supplier, predictable lead time, so an order is generated, approved by rule and sent automatically. Genuine automation, and it depends entirely on the price agreement being current. It also applies to a narrower slice of most organisations' spend than the phrase implies, so measure yours before buying on it.
The automated paperwork
A person decides, and the system numbers the order, routes it for approval, issues it, chases acknowledgement, tracks receipts and flags overdue deliveries. Less impressive to describe and where most of the elapsed time and most of the errors actually are, which makes it the more valuable of the two for most organisations.
What both require
Current prices, clean supplier records and somebody reviewing the output. Automation multiplies existing discipline in both directions, so an automatic order against a stale price list commits you at the wrong price faster than a person would have, and the mistake surfaces only when the invoice arrives.
Questions people ask about automated purchase order
Which do vendors usually mean?
Usually the second. Ask directly, because the first sounds like the second in a demonstration.
How much of our spend could self-raise?
Look at repeat buying against agreed prices with predictable demand. For most organisations that is a minority.
Does this help payables?
Yes, because it produces the orders and receipts the match needs. Most payables benefit from ordering automation is upstream discipline.