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.