The Procurement Glossary » Order Confirmation
Order Confirmation
Procure-to-Pay
Definition
A supplier's acknowledgement that it has accepted a purchase order and will supply as ordered, often confirming price and delivery date.
Explanation
Order confirmation closes the loop that turns a PO into a binding contract and gives the buyer a committed delivery date to track against. Automated confirmations reduce uncertainty and surface any supplier-side changes early.
Example
The supplier confirms PO #4471 with a delivery date of the 14th, which the buyer tracks to expedite if it slips.
Related terms
- Purchase Order (PO) — A buyer's official document authorising a purchase from a supplier, stating items, quantities, prices and terms; once accepted it forms a contract.
- Advance Shipping Notice (ASN) — An electronic notice from a supplier detailing a shipment's contents and timing before it arrives.
- Expediting — Proactively chasing a supplier to ensure an order is delivered on time, especially when a delay would disrupt operations.
- Lead Time — The elapsed time between placing an order and receiving the goods.
Frequently Asked Questions
What is Order Confirmation?
A supplier's acknowledgement that it has accepted a purchase order and will supply as ordered, often confirming price and delivery date. Order confirmation closes the loop that turns a PO into a binding contract and gives the buyer a committed delivery date to track against. Automated confirmations reduce uncertainty and surface any supplier-side changes early.
Can you give an example of Order Confirmation?
The supplier confirms PO #4471 with a delivery date of the 14th, which the buyer tracks to expedite if it slips.
Back to the procurement glossary | Procurement concepts | Contact us