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Purchasing
Purchase order
A purchase order is the formal order sent to a supplier with items, quantities, prices, and delivery dates.
Also known as
PO · Purchasing order
Direct answer
What is Purchase order?
A purchase order is the formal order sent to a supplier with items, quantities, prices, and delivery dates. Open POs are future inventory and must feed into coverage, cash flow, and OOS forecasts. Changes and delays need a clear status.
Practical example
A confirmed PO for 3,000 units is due on October 15. A two-week delay immediately changes stockout risk.
What teams should remember
A purchase order is the formal order sent to a supplier with items, quantities, prices, and delivery dates.
Open POs are future inventory and must feed into coverage, cash flow, and OOS forecasts. Changes and delays need a clear status.