Automated reordering systems typically work by integrating with a company's point-of-sale (POS) system and enterprise resource planning (ERP) software. These systems track sales and inventory levels in real-time. When stock levels fall below the predefined reorder point, the system triggers a purchase order to the supplier, specifying the quantity needed. Some advanced systems also factor in lead times, seasonal demand, and sales forecasts to adjust reorder points dynamically.