business finance journalsOffered the current financial climate, companies require to maximize returns from all their assets and investments. To prevent such issues, sellers often request obtain orders from purchasers. This document represents the buyer’s intent to buy specific quantities of solution at specified prices. In the event of non-payment, the seller can use the PO as a legal document in a court of law to demonstrate the buyer’s intent and to facilitate collection efforts. Companies typically request POs when performing enterprise with other companies for orders of substantial size, as the PO reduces the risks involved.

There are of course other rewards to generating robust relationships with suppliers from a customer’s point of view specifically if a stand alone SMT function exists. Cross category supplier measurement can take place, danger mitigation exercises (each reactive and proactive) can be undertaken and expertise and innovation can be shared for mutual obtain. Equally …