Blanket order

Blanket order

A blanket order is defined as an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, sometimes at predetermined prices. It is normally used when there is a recurring need for expendable goods. Hence, items are purchased under a single purchase order (P.O) rather than processing a separate P.O. each time supplies are needed.

Having a blanket order dispenses the customer with holding large inventories and avoids the administrative expense of processing frequent purchase orders, while favoring discount pricing through volume commitments.

Most of the ERP products include this feature.


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