Procurement and RFQs
PO (Purchase Order)
A buyer-issued commercial document authorizing the purchase of specified goods or services under stated terms. In maritime procurement, the concept helps buyers and providers define, price, compare and authorize operational requirements.
What a purchase order does
A purchase order is the buyer’s authorization to proceed, not a request for a price.
It restates the agreed scope, price and terms so both sides work from one reference.
Whether it forms the contract depends on what preceded it and on the terms attached to it.
PO stands for Purchase Order.
A buyer-issued commercial document authorizing the purchase of specified goods or services under stated terms.
In maritime procurement, the concept helps buyers and providers define, price, compare and authorize operational requirements. The exact meaning may vary with the contract, jurisdiction, port practice or workflow in which it is used.
Where a PO sits in the document chain
Document
Purchase requisition
What it does
An internal request for approval to buy. It never leaves the buyer’s organization.
Document
RFQ
What it does
Asks providers for a price against a defined scope.
Document
Quotation
What it does
The provider’s offer of a price and terms, valid for a stated period.
Document
Purchase order
What it does
The buyer’s authorization to proceed, issued against an accepted quotation.
Document
Delivery note or receipt
What it does
Evidence that what was ordered actually arrived, or that the service was performed.
Document
Invoice
What it does
The provider’s demand for payment, referencing the purchase order.
Quotation compared with purchase order
Issued by the provider.
Issued by the buyer.
Offers a price for a stated scope.
Authorizes the purchase at that price.
Valid for a stated period, after which it lapses.
Stands until it is fulfilled, varied or cancelled.
Creates no obligation on its own.
Creates the commitment, subject to the terms it carries.
Quotation
Issued by the provider.
Purchase order
Issued by the buyer.
Quotation
Offers a price for a stated scope.
Purchase order
Authorizes the purchase at that price.
Quotation
Valid for a stated period, after which it lapses.
Purchase order
Stands until it is fulfilled, varied or cancelled.
Quotation
Creates no obligation on its own.
Purchase order
Creates the commitment, subject to the terms it carries.
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