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In this video, Valentine from Chico demonstrates how to use the purchase order template in Excel, specifically designed for small businesses, stores, and manufacturers. The template offers a simplified way to manage suppliers, receive purchase requests, monitor deliveries, and automate purchase order management. Unlike standard spreadsheets, this workflow consists of three interconnected Excel files that utilize Shigo connections for seamless data transfer. This allows users to develop a custom purchase order system without needing specialized software. The spreadsheet-based system is scalable and can be integrated with other business functions like inventory or sales, creating a comprehensive procurement system.