What is a purchase order?
Abbreviation: PO
A purchase order (PO) is a formal document a buyer sends to a supplier authorizing the purchase of specific goods at an agreed price. It creates a legal contract between the buyer and supplier.
Related Terms
Request for Quote(RFQ)
An RFQ (Request for Quote) is a document a buyer sends to suppliers asking for pricing on a specific material, quantity, and specification. It is the standard first step in B2B metal purchasing.
Lead Time
Lead time is the time between placing an order and receiving the material. For service centers, lead times range from same-day (stock items) to 6+ weeks (mill orders or specialty alloys).
Metal Service Center
A metal service center is a distributor that buys metal in large quantities from mills and resells it in smaller quantities with value-added processing such as cutting, sawing, and slitting.