Definition
A local purchase order (LPO) is the name commonly used in the UAE, Saudi Arabia and the wider Gulf for a purchase order issued to a supplier.
What is a local purchase order used for?
LPO is a regional term. In practice an LPO and a purchase order are the same document. Some companies keep “LPO” for orders to suppliers in the same country and “PO” for imports; many simply call every purchase order an LPO, and many government and project buyers use the term on all orders. Suppliers often won’t deliver, or won’t be paid, without a valid LPO number.
Example: a fit-out contractor in Dubai issues LPO 0931 for AED 18,900 of gypsum board; the supplier quotes that number on its delivery note and tax invoice.
Don’t confuse an LPO with an LPR, a local purchase request, which is a request to buy rather than an order. Read more in LPO, PO or LPR?