PO Confirmation

What is it and why is it required?

A Purchase Order (PO) confirmation is a written confirmation (via e-mail or via the Ariba Network if you are an Ariba Network enabled supplier) from a supplier to a Cargill contact (buyer) that the supplier will deliver a specified quantity of materials, or perform a specified service, at a specified price within a specified time, or in case of Ariba Network a digital confirmation performed inside Ariba Network. .  Cargill issues payments based on the terms and transaction values listed on the PO. Suppliers must confirm all the costs which should match to the PO. If there are ANY differences, contact the buyer.

NOTE: Generally, order confirmations are not required for services. In case of any change to this process, suppliers will be duly communicated.

China & Korea: Not applicable in both these countries due to the legal requirement. Suppliers are asked to add company chop on these PO based contract (Non Contract spend) when they do PO confirmation.

Thailand, Malaysia: Not applicable in both these countries.

Indonesia: Order confirmations are required for both PO materials and services. For Services based on Contract/Work Order, confirmation received based on signed Contract/Work Order

Europe, Middle East, Africa: Suppliers in EMEA will receive automatic e-mails asking to confirm that they have received Cargill`s Service POs.

How long does a supplier have to confirm a PO from time of issue?

All purchase orders require written confirmation (via e-mail or via the Ariba Network if you are an Ariba Network enabled supplier) to the Cargill contact listed on the PO, within one business day (24 hours) in most countries or two business days (48 hours) in Thailand.  If an order confirmation is not received within 24 hours, follow-up with the supplier will begin until the order confirmation is received.

Indonesia: If there is no confirmation within 1x24 hours (one business day) from Vendor, it is considered that Vendor agrees to deliver the goods or services in accordance with all the requirements specified in the Order.

What needs to be included on a PO confirmation?

• Estimated date when delivery will be received by Cargill plant. (If delivery is Cargill planned transportation, date when material will be available for pickup as well as a pickup number.)

• Description of service or material

• Quantity

• Price

• Unit of measure (UOM)-Unit of Measure that will be used on invoice. Invoice and PO should match to ensure accurate pricing.     

• Any additional costs that are not part of the per unit cost, such as freight, handling, pallets, etc. (If have any questions or need clarification, contact the buyer.)

• Currency

• Tax amounts

• Delivery terms (Incoterms)

• Ship-from address, also known as the goods supplier address. (You will need to review this address on each purchase order you receive to ensure the address is the correct location that the product is shipping from, as it impacts tax determination.)

• Notification to the PO contact that the material is being shipped from outside the country, if applicable.

NOTE: In India, HSN/SAC codes are required if applicable.

Please note that shipment without confirmation is acceptance of the Purchase Order price.  If a modification of PO is required it is to be requested at time of confirmation and prior to shipment.