How to place your first stock order with suppliers

To successfully place your first stock order, you must issue a formal Purchase Order (PO) that details exactly what you are buying, the agreed price, and the expected delivery date. This document is your primary protection; it ensures that both you and your supplier are on the same page before any money changes hands, preventing costly misunderstandings regarding quantities, sizes, or quality.

1. Create a Formal Purchase Order

Even if you have been chatting with a supplier over WhatsApp or email, your official order should be a standalone document. A professional PO should include:

• SKU/Product Codes: The specific identifiers for each item.
• Quantity and Size Breakdowns: Don't just say "100 t-shirts"; specify "20 Small, 50 Medium, 30 Large."
• Unit Price and Total Cost: Ensure these match the trade price list you were previously quoted.
• VAT: Confirm if the prices are inclusive or exclusive of VAT (Value Added Tax).

2. Confirm Delivery and "Incoterms"

Before hitting 'send', you need to know exactly when the goods will arrive and who is responsible for them during transit. In the clothing industry, "lead time" (how long it takes to manufacture or pick and pack your order) can vary wildly.

Ask the supplier to confirm the Expected Delivery Date (EDD) in writing. You should also clarify the shipping terms. For example:

• Ex Works (EXW): You are responsible for the cost and risk of picking the goods up from the supplier's warehouse.
• Delivered Duty Paid (DDP): The supplier handles everything, including shipping and any import duties, until the stock reaches your door.

3. Negotiate Payment Terms

As a new business, most suppliers will ask for "Pro-forma" payment. This means you must pay the full invoice before they ship the goods. As you build a relationship, you can eventually negotiate "Credit Terms," such as "Net 30," where you pay 30 days after receiving the invoice.

Term Type	What it means
Pro-forma	Payment required in full before the order is processed or shipped.
Deposit & Balance	Typically 30% upfront to start production and 70% before shipping.
Net 30 / Net 60	Payment is due 30 or 60 days after the invoice date.

Top Tip: Always pay via bank transfer or a secure business credit card. Avoid "cash in hand" or untraceable payment methods, as these offer no protection if the supplier fails to deliver.

4. Final Verification

Once you send the PO, the supplier will send back a Sales Order or a Pro-forma Invoice. Check this line-by-line against your original PO. If the prices or quantities differ even slightly, query it immediately. Only once you are 100% satisfied should you make the payment and trigger the shipment.