ProfitHub Articles

How to obtain your first Purchase Order

Receiving a government-issued purchase order or tender is not an easy achievement and countless companies in South Africa may wait and work for years before being awarded their first legitimate government purchase order. And being rewarded with a purchase order may sometimes be even more difficult than completing it.

But hey, you have been awarded with one, and now your mission is to perform in terms of it and to ultimately get paid for it. However, fulfilling a purchase order is not always as easy as it sounds, various steps first need to be taken and tasks that need to be completed before you can get paid.

Here are a few steps that always need to be taken to ensure that your purchase order is completed, correctly.

Step 1: Find Government Purchase Orders relevant to your business

The first thing you need to do is find a purchase order that will fit your specific your business. Purchase Orders are advertised in various places, ranging from newspapers to websites.

We would recommend using a PO notification service. They will notify you whenever there is a new purchase order in your area available that suits your business.

Step 2: Ensure your business can complete the job

Winning a purchase order simply means two things: first off, that the Government has chosen you as the most promising supplier and secondly, that you’re going to take on the Government as one of your clients.

Consequently, you must make sure you have the staff, the cash flow, the skills, and the equipment to deliver the services the Government needs at the proposed rate and within the proposed timeframe – just like with any other client.

Luckily, if you don’t have the cash flow needed for a 2-to-3-year contract, we would be able to help with funds and loans, on a transaction-specific basis.

Step 3: Register on the Central Supplier Database (CSD)

Your business must be registered on the Central Supplier Database (CSD) to apply for Government Purchase Orders.

The CSD is the Government’s list of approved suppliers. To get your business on this list, you must complete an online registration on the National Treasury’s website where you’ll be required to provide your details along with compulsory Company documentation.

Once submitted, the Government will assess your documentation and add you if everything is in order.

Step 4: Get the required Company Documentation in order

Very often companies apply for Government purchase orders without complying with the list of requirements or without submitting the necessary documentation. Consequently, will result in being eliminated before you even get a chance to compete with the other applicants.

Make sure you read the Purchase Order Document thoughtfully and make sure you get all the required Company documentation in order.

Step 5: Fill out your first Purchase order Application before the deadline

First, make sure you submit your application well before the closing date to avoid having an incomplete application, by the time of the deadline.

Allow yourself enough time to research what good purchase order responses look like and how competitive your pricing can realistically be.

Step 6: Repeat the process until you reach Purchase order success!

Now that you’ve completed your first purchase order application, the trick is mastering your Government Purchase order applications.

As a result of great, competitive purchase order responses you’ll be paving your way to Purchase order success soon enough!

But do you have the funds to execute your Purchase Order?

What we bring to the table

ProfitHub is a well-established purchase order financing company that was solely incorporated to help small and medium businesses fulfil purchase orders and purchase orders that they cannot fulfil or afford on their own.

Although Profit Hub’s main business is to provide purchase order financing to SMMEs, Profit Hub provides the following services to its clients:

Purchase Order Financing
Importing and Exporting Financing
Overall assistance with the procurement and fulfilment of Purchase Orders

Sven Marnewick

2023-05-31 11:56