After Receipt of Order (ARO) is a payment term that indicates when a buyer must pay after the supplier receives an order. In ARO shipping, payment is due a set number of days after the order is received, often 30, 60, or 90 days. For example, 30 days ARO means payment is due 30 days after the supplier receives the order.
ARO shipping terms help both buyers and vendors manage cash flow and reduce financial risk. This is especially useful in international logistics where longer lead times require flexible payment structures.
For beverage companies, ARO aligns payments with order fulfillment. Suppliers can produce goods based on confirmed orders, avoiding dead stock or spoilage.