How to Place Purchase Orders | Placing Purchase Orders

How to Place Purchase Orders | Placing Purchase Orders

After accepting a quotation, your next step should be to order the goods. As per the prevailing law of English the buyer's order is only an offer to buy. The arrangement cannot become a legal binding until the supplier accepts the offer. Once the supplier accepts the offer, both parties are legally bound to honour their agreement. When both parties are agreed and a binding agreement comes into force, the buyer is bound by law to:

Ø  accept the supplied goods as long as they meet the terms and conditions of the order.

Ø  pay for the goods at the time of delivery or within the period specified by the supplier.

Ø  check the goods as soon as possible. (Remember that if the buyer fails to make complaints of faults to the supplier promptly, it will be treated as acceptance of the goods.)

However, you should bear in mind the following important points to ensure efficient and prompt handling of your order.

(i) Try to use official printed order forms as they are pre-numbered and therefore reference is easy. Moreover, printed headings ensure the inclusion of all information.

(ii) Place a clear and firm order because it interests the supplier much nowadays.

(iii) Do not hesitate to give a detailed, accurate, and complete description of the items you wish to buy, even if it amounts to repeating.

(iv) Mention the size, color, quality, make, and reference to catalogue or identification number, if the parties have any.

(v) Make sure that your descriptions are not varied from those given in the original letter inviting quotations.

(vi) Specify the quantity you want to buy. Also state the price per unit of item.

(vii) Indicate the mode and terms of payment. If you have been getting regular supplies from a seller, you need not include this information.

(viii) Respect the wishes of the seller as much as possible and send the payment in the mode he desires. He may, for example, demand a certain percentage in advance. Do not hesitate to let him have it because you have accepted his quotation after carefully considering his standing in the market and the quality of goods he has offered for sale.

(ix) Mention the mode of transport such as passenger train, goods train, truck, etc. though in most quotations the modes of transport are stated.

(x) When you place an order, you expect the goods to arrive within a reasonable period of time. However, it is always better to spell out what you consider to be the reasonable time-period. Sometimes, you need goods urgently and you may have indicated this matter to the seller in your earlier correspondence. But it is necessary to mention it again to remind him.

(xi) State the full address of the place where you want the goods to be delivered.

(xii) Normally proper packing is the responsibility of the seller and its cost is included in the quotation. But if you need a special kind of packing and are prepared to pay extra charge, mention it in your order.

(xiii) Goods would be insured only when you specially instruct the seller. If, however, it is the normal practice to insure your ordered goods, you need not include such an instruction.