The meaning of a PO sheet is a Purchase order sheet generated by the customer/buyer for their vendor/ supplier, with all information like quantity, unit price, total lot price, and purchase order number. Some people call it a garment order sheet. A PO sheet is the most important document for handling garment export orders and shipments. After confirming the order, the buyer issues a PO for their vendor. This article details the PO (Purchase Order) Sheet of Garments Manufacturing.
A PO sheet contains all the necessary information on a specific order lot, need for all departments of the garment industry. Merchandiser does every task following a PO sheet, from raw material booking to packing list submission, export, and Shipping documentation. The full form of PO in the garment industry is Purchase Order, the same as in other industries. PO sheet needs from order confirmation to shipment. Hope this article will give a clear idea of the Garments buyer’s purchase order (PO) sheet.
PO Sheet of Garments Industry
A garments PO sheet gives us a general idea about a purchase order. This is an authorized document for garment suppliers handling a lot. Generally, the merchandiser provides a PO sheet to all departments, from the warehouse to the QC inspection room; some customers have online software that allows anybody to download a PO sheet using the user ID and password.
List of information we get from a PO Sheet
PO sheet varies from buyer to buyer; here I am giving all the information that may not be available in all buyer PO sheets.
- Purchase order number/ PO Number– The PO number is fixed by the customers themselves.
- Size breakdown with order quantity– XS, SM, MD, XL, XXL; which size how qty order.
- Lot-wise Order Quantity
- Shipment Date of Exporter port/ ETD (Estimated date of departure)
- ETA- Estimated date of arrival, the date the customer may receive goods at their port.
- Penalty if a supplier fails to make an on-time shipment
- Product Unit Cost– FOB, CMT, CM
- Total Cost of that PO
- Factory Name
- Vendor/Supplier Name: Sometimes, one supplier gets the order, but produces it in a different factory.
- Shipping Address
- Overseas Port Reach Date
- Sourcing Agent
- Shipment Terms
- PO Issue Date– The date the buyer generated the PO.
- LC Number
- Fabric Supplier Name and Code
- Fabric Content– Percentage of cotton, Lycra. Fabrics GSM.
- Exit country port
- Quantity per case
- Trims and Accessories cost– All BOM costs are in some buyers’ PO sheets.
- Product Category: Men’s or boys.
- Season– There is a 3/4 season of a year.
- Description– Buyer sets product description from a commercial point of view, as per its marketing policy.
- Goods Description
- Size-wise Order Quantity
- Packing Type: Solid or Assort
- Transaction Policy
- Payment Terms– The signed agreement between the Buyer and the Garments supplier. Payment terms will be net 40/60/90 days after the Buyer’s receipt of a PO product.
- Necessary Instruction- if any
- Terms and Conditions– If there is any manufacturing agreement between the buyer and vendor.
- Over-ship Tolerance– The quantity a vendor can ship more than the order
- Under-ship Tolerance– The quantity a vendor can ship is less than an order.
- PSI Location-The location customer QC will do the pre-shipment inspection. PSI is being held at the vendor factory in the garments business.
(Purchase order sheet varies customer by customer, here I gave all information for your easy understanding. We will not get all this information in every customer PO sheet)
Explanation of a few points of the Garments PO Sheet
Purchase order number/ PO Number
A PO number that follows both the buyer and the vendor for tracking and execution. Every PO is generated with a PO number, a PO provided by the customer. Customers receive, track, and pay against PO numbers.
Size breakdown with order quantity
The most important information needed for merchandiser, warehouse, cutting, sewing, and packing to cut, sew, and pack PO sheet-wise. So size breakdown and size-wise order.
Lot-wise Order Quantity
A total quantity of an individual PO or lot. Some buyers have different colors in order, so they make color-wise PO sheets, keeping the same PO number.
Shipment Date of Exporter Port
The shipment date is an important thing that is indicated on the PO sheet. If the shipment date changes, the PO sheet is also updated as well.
Pack Type: – Solid or Assort
A PO sheet shows a type of pack that needs to be done for a specific PO. It can be a solid pack or assortment. If it’s a solid pack, how many pieces per SKU if assort, then how many quantities per carton, which size is included or excluded here?
Penalty if the supplier fails to give an on-time shipment
If a maker cannot meet the buyer’s delivery/ shipment date, they have to ship by air at their own cost. There is some alternative penalty; sometimes, a buyer wants a commission on a product.
Other information in the PO Sheet:
All information in the PO sheet is very important as it has order and shipment-related details. PO is needed for the merchandising team, planning team, GPQ team, Buying House QC, and others.
