Receiving a government issued purchase order or tender is not an easy feat, and the majority of South African companies wait and work for years before being awarded their first legitimate government purchase order. Some will never be awarded one at all.

The process of being awarded a purchase order is often far more difficult than completing the purchase order itself.

So, now that you are fortunate enough to have been awarded with one, your focus should be on fulfilling it accordingly.

Unfortunately, fulfilling a purchase order is not always as easy as it sounds. There are various steps that need to be taken and tasks that need to be completed before you can expect to be paid. 

We have highlighted 5 critical steps that need to be taken to ensure that your purchase order is completed, correctly:

5 Critical steps to fulfill a purchase order:

1. Verify your purchase order:

Unfortunately, in South Africa, there are various scammers that 'award' fake purchase orders to companies claiming to fund supplies which do not exist.

It is therefore critical to verify that your purchase order is legitimate before you begin the process of fulfilling it. 

2. Obtain updated quotes

Your company most probably issued a competitive bid to the relevant government entity with a specific supplier price in mind. Based on that bid, you were awarded the purchase order.

Suppliers often change their prices, and this has been seen even more frequently since the start of the COVID-19 pandemic. It is therefore necessary for you to ensure that the price you were quoted for the order and the bid you put forward has remained unchanged. 

3. Structure your funding

Unfortunately, this is the stage where most companies lose their purchase orders. 

Finding funding for your purchase order is the most important step during the entire process. While some businesses may be able to fund their own purchase orders, others will need to apply to a reputable purchase order funding company, and as soon as possible.

A handful of purchase order funding companies assist with the fulfilment of the entire order and offer advice on the process as a whole. These companies can guarantee that your purchase order is fulfilled, fast and flawlessly.

4. Arrange delivery

It is important to ensure that the ordered goods are delivered to the correct location, in a suitable condition. Furthermore, it is also always vital to ensure that the specific government entity knows on which date and time you will deliver the goods, in order for them to be prepared to accept delivery and make space for them.

5. Issue a delivery note and invoice

Once you have delivered your purchase order, you are entitled to request payment. Now, in order to secure payment, you must ensure that a delivery note is signed on the date of delivery and an invoice is rendered as soon as possible thereafter. The money should then be paid to your business for fulfilling the purchase order as requested.

The 5 steps mentioned above are a mere summary of the process it takes in order to successfully fulfil a purchase order. Naturally, there will be certain actions needed to be taken in conjunction with these, which may be unique to your specific circumstances. However, if any one of these 5 key steps are missed, your company may risk losing the purchase order entirely or may not end up getting paid.

If you require any assistance and guidance on how to fulfil a purchase order, or if you require the necessary funding for a rewarded purchase order, send us an email on info@profithub.co.za or fill out our online application form.