What is Purchase Order (PO) in Retail? Explained

A Purchase Order (PO) in the retail industry is a formal document issued by a buyer to a seller, outlining the details of the products or services to be purchased. It includes key information such as product descriptions, quantities, agreed-upon prices, delivery dates, and any other terms and conditions. The Purchase Order serves as a legally binding contract between the buyer and seller, providing clarity on the agreed-upon terms of the transaction. Retailers use POs to initiate and track orders, facilitate efficient communication with suppliers, and ensure a structured and organized procurement process.