Blanket Orders contain multiple delivery dates scheduled over a period of time for specific goods, sometimes at predetermined prices. National is normally issued a blanket order when there is a recurring need for expendable goods. Items are purchased under a single purchase order rather than processing a separate P.O. each time new supplies are needed.
Advantages of Blanket Orders
Negotiating a blanket order with National Bronze will dispense you from holding large inventories of goods, while avoiding the administrative expense of processing frequent purchase orders. Also, it can offer favorable discount pricing through volume commitments.
Blanket purchase orders should be considered when:
• There is repetitive purchase of specific goods and services from the same supplier, which are paid in a predictable manner.
• Orders require numerous shipment / excessive storage.
• To obtain favorable pricing through volume discounts.
National blanket orders format usually include the following information:
• The beginning and ending time period for the blanket order
• A cancellation clause
• Items and/or categories of items to be covered by the blanket purchase order
• The estimated quantity, including a maximum (if any)
• Prices and pricing arrangements
• Terms and billing arrangements