Blanket Purchase Order
A blanket purchase order (also known as a standing purchase order) is an agreement arranged between an organization and a supplier to deliver goods or services at a predetermined price on a recurring basis for a specified time period.
It is an easy way to order goods from a supplier.
Advantages of Blanket Purchase Order
- Buying in large quantities allows the benefit of bulk pricing. It helps to reduce costs.
- Improves efficiency and shortens purchasing lead time.
- Saves a lot of time.
- Protect You from Price Fluctuations.
IntelliBooks app provides a separate section for purchase & sale orders so that you can manage them separately.
When Should a Business Use Blanket Purchase Order
While blanket orders can help businesses streamline repetitive purchases and take advantage of lower buying costs it is good to use under certain circumstances:
- You don’t have a lot of storage space and don’t want to keep huge bulk of inventory.
- Unit costs should be well-defined, and specific details can be given.
- Throughout the duration of the contract, a single vendor will deliver.
- Throughout a specified time period, specific quantities of the same goods or services are needed.
- Delivery on time lowers storage costs and risks.
What to include in Blanket Purchase Order
- Price and payment terms.
- Duration of agreement.
- Item specifications include expectations of quality, size, and quantity.
- Delivery quantity, times, and locations.
- A cancellation clause.
- Intervals of delivery.
- Billing information — how the vendor will submit invoices for payment.
Conclusion
Blanket orders, when used correctly, will significantly improve the buying process’s productivity and reduce the number of transactions.
With IntelliBooks you can easily manage your entire business on phone.
Manage all your spending including blanket POs, standard POs, and Sales Order with IntelliBooks
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