4. Purchasing the Components

Once the suppliers are chosen, the purchasing process can begin. This involves creating a formal Purchase Order (PO) that includes all the specifications, quantities, prices, and delivery details. The purchasing team works with the engineering team to ensure that every detail of the components is correct, reducing the risk of receiving incorrect or substandard parts.

Key Considerations:

• Detailed PO: Ensure that the PO includes complete and accurate specifications, including part numbers, tolerances, certifications, and quantity.

• Payment Terms: Negotiate payment terms with the supplier, such as upfront payments, net-30, or net-60 terms. This is important for cash flow management.

• Order Confirmation: After sending the PO, the supplier should confirm the order, ensuring all details are correct. This step minimizes any misunderstandings that could lead to shipment delays or incorrect components.