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Can Purchase Order formats use the same templates for both small and large orders?

Posted: 2011-03-22

Full Question

I'm interested in learning if you think a Purchase Order (PO) format for small and large orders can use the same template.

Answer

I think the case could be made that large orders and small order both need to be taken seriously when it comes to PO and contracts. At the sourcing agency where I work, we use the same PO template for both large and small orders for many years now. Basically we pulled the best practices from our larger buyers and applied it to the small buyers' order. In my experience, I have found that the smaller orders are harder to manage because the buyer doesn't have as much leverage with the seller. So it is very important for the small buyer to have a well defined and mutually agreed PO in place.

It would be very dangerous to think that because the order is small, you don't need to be as concerned about the PO details. Unfortunately, in reality, the opposite is true.

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