A purchase order is the buyer’s formal written document requesting goods from a supplier, specifying product, quantity, delivery date and commercial terms, and forming the contractual basis for that consignment once accepted.
In trade practice
Suppliers check the purchase order against their own order confirmation before production or dispatch, flagging any discrepancies in product code, quantity or delivery date immediately. Logistics teams use the purchase order to align shipping instructions and customs documents. A common source of disputes and payment delays is a mismatch between the purchase order, the confirmation and the shipping documents, so all three should be reconciled before goods leave the warehouse.
In a specification
Contracts typically state that no goods will be dispatched without a valid purchase order number, which must appear on the commercial invoice and packing list.