📄 The Practical Issues with Purchase Orders (POs) in Indian Agro Trading

🎯 Audience:

• Business Growth Partners
• Internal Sales Team

🧩 Purpose:

To raise awareness of common risks, malpractices, and misconceptions around Purchase Orders (POs) in the Indian agro-trade ecosystem — and to establish best practices for handling them within the OBAOL Supreme framework.

🚨 Section 1: The Reality of POs in India

❌ 1. POs Without Genuine Intent

Many buyers issue POs casually, without a firm decision to buy. Common examples include:

• “We are coming tomorrow…”
• “The truck is on the way…”
• “Buyer will reach by evening…”

What Goes Wrong:

• Suppliers prepare goods or dispatch them.
• The buyer delays, cancels, or disappears.
• Result: Loss of time, stock, money, and trust.

🧩 2. Multiple Layers of Middlemen

• Often, the PO is issued by a middleman, not the actual buyer.
• The real decision-maker is unknown or unreachable.
• Mediators may act without client approval.

Impact:

• Confusion
• Poor communication
• Failed coordination
• No clear accountability

⚖️ 3. Lack of Legal Clarity Around POs

Most Indian agro traders do not treat POs as legal documents.

• Unclear roles and responsibilities
• No timeline for payment
• No defined consequence if cancelled

➡️ POs become informal promises rather than enforceable agreements.

🧭 4. Supplier Bears the Risk

When a PO falls through, the supplier is already invested:

• ✅ Stock
• ✅ Labour
• ✅ Transportation
• ✅ Time and resources

Without execution, this results in direct loss for the supplier.

📉 5. Breakdown of Trade Trust

• Suppliers grow hesitant to act on new POs.
• Traders stop trusting documentation.
• Agro trade becomes slower, riskier, and less professional.

This damages not just business — but India’s overall trade culture.

✅ Section 2: What You Should Do (Best Practices)

As a Business Growth Partner, your role is not just to get deals — it's to protect the trade flow.

1. Verify the Buyer Before Acting on a PO

• Speak directly to the final decision-maker.
• Cross-check:
  • Name
  • Company
  • GST number
• Ask clear questions:
  • “Are you the final buyer?”
  • “Are you aware of this PO?”
  • “When exactly is dispatch expected?”

2. Educate the Buyer (and Any Mediator)

• Explain that a PO is a business commitment.
• Reinforce OBAOL's values:
  • Verified trade
  • Transparency
  • Structured process
• Clarify that:
  • No goods are moved without clear confirmation.
  • Communication must be traceable (email, signed document, etc.).

3. Avoid Last-Minute Commitments

• If the situation feels unclear — pause.
• Don’t commit:
  • Goods
  • Transport
  • Labour
    ...until 100% clarity is established.
• Insist on written or digital proof wherever possible.

4. Be Cautious of “They Are Coming” Phrases

Statements like “they are reaching by evening” are not confirmations.

• Confirm directly with the person who’s coming.
• If you haven’t spoken to the buyer, do not assume anything.
• Common risks:
  • No one shows up
  • Fake buyer appears
  • Mediator miscommunicated

🛡️ Section 3: Why This Matters

At OBAOL Supreme, we are creating a trust-driven agro ecosystem. That means:

• ✅ Following process over pressure
• ✅ Educating the industry
• ✅ Reducing malpractice through professional conduct

Every PO we process should add strength to our verified network.

🧠 Section 4: Final Thought

A PO is not just a paper — it's a promise.

But in the Indian context, it is often misused or misunderstood.
Our role is to fix this culture:

• One verified buyer at a time
• One honest PO at a time
• One successful trade at a time

🎯 Key Takeaways

• Never assume a PO = payment.
• Always verify the final buyer.
• Use written confirmations.
• Educate mediators and clients alike.
• Protect your suppliers by following the process.

📌 In the next training, we’ll cover how to qualify a PO step by step and confirm its legitimacy before moving forward.

Until then — trade smart, stay alert, and represent OBAOL Supreme with integrity.