eng
About   |   Newsletter
Demand & Supply Chain Management Evolution


Supply Chain Glossary

Glossary  >  O  >  Order, Purchase  


 

Order, Purchase


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

A purchase order [PO] is a document issued by a buyer to their supplier that defines what is needed, in what quantity, when performance is required, and on what terms, including price and payment terms.  The issue of a purchase order is increasingly a prerequisite in many payment systems for the payment of invoices, so as the practice of paying invoices without a matching PO declines, the proportion of transactions made by raising a PO is increasing, except for low value transactions.  Procurement cards, as the lowest cost acquisition method, are often used for low value acquisitions.

Legally, purchase orders can become part of the ‘battle of the forms’ between buyer and supplier, when each party exchanges documents with slightly different terms, making it hard to define when offer and acceptance were made on unambiguous and agreed terms.  To avoid this, many recurring purchases are made subject to an overarching agreement with the supplier, so that each PO ‘calls off’ against a formal agreement which defines the terms and conditions of the arrangement.  See also Battle of the Forms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Job Opportunities
 
Procurement Specialist - Directs (Raw Materials)
     
     South East  -  PERM  -  Beaumont Select

Logistics Manager- Global FMCG Food Producer & Provider - UK Food Importer
     
     Kingston upon Thames  -  PERM  -  Michael Page

Procurement Consultant
     
     Bristol  -  PERM  -  Procurement People

Multi-Site Warehouse Manager
     
     Liverpool  -  PERM  -  Cast UK

Supply Chain and Logistics Graduate
     
     Worcestershire  -  PERM  -  Michael Page

Procurement Professional
     
     Birmingham  -  PERM  -  Procurement People

Head of Strategic IT Contracts
     
     South East  -  PERM  -  Beaumont Select

IT Category Manager
     
     City of London  -  PERM  -  Morgan McKinley

Warehouse Operations Manager
     
     Spalding  -  PERM  -  Cast UK

Supply Chain Principal
     
     Pollokshields, Scotland  -  PERM  -  JAM Recruitment

Indirect Category Buyer
     
     Nuneaton, England  -  PERM  -  JAM Recruitment

Project Buyer
     
     Peterborough  -  PERM  -  Jonathan Lee Recruitment

Interim Automotive Logistics Project Manager - Global business
     
     Derbyshire  -  TEMP  -  Michael Page

Procurement Manager
     
     Bedfordshire  -  PERM  -  Procurement People

Procurement Analyst
     
     Midlands  -  PERM  -  Beaumont Select



 
           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 


Join us on


News & Trends
 

Last update 3 Mar 2020
UK manufacturing expands at fastest pace since April 2019, but supply-chain disruptions grow
   Source: Markit /CIPS UK Manufacturing PMI ®  -  IHS Markit
United Kingdom 


Chemicals & Pharmaceuticals

Even industries driven by the strictest safety and environmental regulations are capable of reducing their costs. Our solutions improve each phase of the chemical logistics supply chain, to increase your supply chain performance, improve predictability and mitigate potential problems before they arise. B...


Electrification and the “Death of Diesel” sees heavy spending on new mobility, but slowing sales and shrinking profits leads to bumpy road ahead, says AlixPartners study

The report highlights some of the challenges the industry faces going forwards: Automakers could incur a $60-billion pre-tax profit hit through 2023 86% of Chinese consumers and 59% of UK consumers polled say internal...


Education
 
 6 
May
2020
Principles of Supply Chain Management
     London
 3 
Jun
2020
Supplier and Contract Management
     London
15
Jun
2020
Purchasing Strategy and Leadership
     London
17
Jun
2020
Negotiating with Suppliers
     London
18
Jun
2020
Introduction to Purchasing and Procurement
     London

Local & Regional Agenda
 


Resources
 
FLORIM CERAMICHE SPA: On the road to Industry 4.0: advanced planning & finite capacity scheduling

Florim Ceramiche SpA has been worldly recognised as a leader in ceramics industry for more than 50 years, thanks to its committment to research, innovation and social responsibility. Florim business style can be summa...

ProcureCon Indirect 2015 Benchmarking Study

In anticipation of the 2015 ProcureCon Indirect 2015 conference, the organization released the results of this year’s benchmarking study. Take a look to see how your peers answered such questions as:- Which five in...


International Agenda