in 2017 SQL was introduced function TRIM
please check example (I didn't understand if you need to keep PO/CO)
DECLARE @x VARCHAR(10) = 'PO 000127'
SELECT
TRIM('0 ' FROM @x) AS Result,
CASE
WHEN @x like '%PO%' THEN 'PO ' + TRIM('0 ' FROM SUBSTRING(@x, 3, LEN(@x)))
WHEN @x like '%CO%' THEN 'CO ' + TRIM('0 ' FROM SUBSTRING(@x, 3, LEN(@x)))
ELSE TRIM('0 ' FROM @x)
END AS Result2
UPDATED answer, after conversation with @luuke i am giving you a adjusted solution
SELECT
CAST(
CASE
WHEN @x like '%PO%' THEN REPLACE(@x, 'PO', '')
WHEN @x like '%PO%' THEN REPLACE(@x, 'PO', '')
ELSE RTRIM(LTRIM(@x))
END
AS BIGINT) AS result