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PURCHASE ORDER LETTER. CONTID After getting brochure or quotation from the supplier, you might decide to order the products. Therefore, your order letter.

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Presentation on theme: "PURCHASE ORDER LETTER. CONTID After getting brochure or quotation from the supplier, you might decide to order the products. Therefore, your order letter."— Presentation transcript:


2 CONTID After getting brochure or quotation from the supplier, you might decide to order the products. Therefore, your order letter should include the information in details and accurately in order to avoid wrong delivery of goods.

3 DETAIL INFORMATION THAT YOU SHOULD INCLUDE With reference to the sources ( magazine, trade Expo or Fair, colleagues, etc) if any. Quantity of items, amounts, prices, product number, catalogs (if any). Delivery details ( means of delivery and time of delivery) Terms of payment. (quarterly account, Letter of Credit(L/C), Bank transfer, by check or by cash, etc.)

4 OPENING PARAGRAPH The following phrases and sentences are used in order letters: Opening: 1. Thank you for reply of 3 January regarding the CD we wrote to you. Enclosed you will find our official order (No.A238) for…. 2. Your letter of 2 January convinced me to place a trial order for new type of Compressor you wrote about. 3. Please find enclosed our order No.BH56 for 25 units of Samsung Galaxy Tabs.

5 ACCEPT THE TERMS Discount: 1. We would like to thank you for the 30% trade discount and 10% quantity discount you allowed us. 2. Finally, we would like to say that 25% trade discount is quite satisfactory. 3. Although the rather low cash discount of 5% disappointed us, we will place an order for 200 LG TV sets in various size.

6 REQUESTED ACTION Delivery: 1. Please send the goods by intercity express as we need them before Idul Fitri. 2. We advise delivery by road to avoid constant handling of this fragile consignment. 3.Delivery before fasting month Ramadhan is a firm condition of this order, and we reserve the right to decline goods delivered over time.

7 CONTID Packaging: 1. Each piece of crockery is to be individually wrapped in thick paper, packed in straw, and shipped in wooden crates marked and numbered 1 to 5. The mountain bikes should be packed in plastic and put them in a wooden box individually, then numbered 1 to 200.

8 CONTID Payment: 1. We would like to confirm that payment is to be made by irrevocable letter of credit which we have already applied to the bank. 2. Once we have received your advice of dispatch, we will send a bankers draft to… 3. As we agreed, the payments would be made against quarterly account statements. 4. As agreed, you will draw on us at 30 days, document against acceptance, the document being sent to our bank, Mandiri Bank Surabaya Branch.

9 CLOSING PARAGRAPH Closing: 1. We hope that this will be the first of many orders we will be placing with you. 2. We will submit further orders, if this one is satisfactory for us. 3. Finally, I look forward to receiving your acknowledgement. 4. Finally, I look forward to receiving your advice of dispatch.






15 DECLINE PO 1. Out of stock (give alternative) 2. Customers with bad reputation: We would only be prepared to supply on a cash basis. As there are too many orders we have received before, it seems unlikely that we could deliver within next semester. I am sorry to say that we must turn down your order as we have full order books at present and cannot give a definite date for delivery.

16 TERMS ARE NOT APPROPRIATE, INCLUDING DISCOUNT, AMOUNT OF QUANTITY, PAYMENT, AND DELIVERY. Discount: It would be very uneconomical for us to offer our product at 30% trade discount as we work on a low profit margin. The usual cash discount is 5% which is lower than the figure you mentioned. The discount you ask, for us is far more than we offer any of our customers.

17 CONTD The amount of quantity is too big. We are only a small company and possibly cannot handle an order for more than 20,000 units. Our factory does not have facilities to produce 40,000 units. The amount of quantity is too small. We only supply orders for garments by gross. Therefore, we suggest you try a boutique rather than manufacturer. Our factory only sells material by 30 meter roll which cannot be cut up. The shirts we manufacture are only sold by dozens. We never sell individual garments.

18 CONTD Terms of Payment: We only accept payment by irrevocable L/C. We never offer quarterly terms on initial orders, even to customers who can provide security. However, we might consider this sort of credit once we have had three orders. Our company relies on quick sales, and very low profit, and thus we cannot offer long term credit facilities.

19 CONTD Terms of delivery: 1. Delivery could not be possible within the time given in your letter. 2. Two months must be allowed for delivery, as we ourselves have to get raw materials and rely on our suppliers.



22 WRITE A PURCHASE ORDER BY COMPLETING THE FOLLOWING PHRASES. Dear Sirs, Thank/pricelist and brochure/ sent/on/21 June. We/satisfied/ your good/ suitable. We/place/ order/1,000 tins of tomato ketchup. We/enclosed/order (no.2345) Our bank/issue/a Letter of Credit/in your favor/your invoice f.o.b Surabaya. We look forward/receive/your delivery. Yours faithfully

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