Purchase Ordering

Purchase ordering is a formal process used by businesses to request goods or services from suppliers. It begins when a buyer identifies a need for products, creating a purchase order (PO) that details what is needed, quantities, prices, and delivery terms. The supplier then reviews the PO and, if acceptable, confirms it, forming a contract. This process helps ensure that purchases are documented, budgets are followed, and both parties have clear expectations. Ultimately, purchase ordering streamlines procurement, enhances organization, and improves inventory management for businesses.