PM (Purchasing Memorandum)

The Purchasing Memorandum (PM) is an official statement issued by a business or organization, outlining how their purchasing and procurement process should be conducted. It serves to clarify the steps for users of the system to purchase goods or services from outside sources, including details such as payment terms, preferred suppliers, acceptable quality standards, delivery requirements, and more. By following the guidelines laid out in the PM, businesses can ensure that they are ensuring value for money within their supply chain, while also maintaining control over their purchases.