Blanket purchase order
Also called blanket PO, blanket order
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is blanket purchase order?
A blanket purchase order is a long-term order in which a customer commits to buy a set quantity or value of items over a period at agreed prices. The customer then calls for deliveries in smaller amounts as needed, and each of those deliveries is called a release.
Blanket purchase order example
One blanket PO covers 12,000 hex bolts over the year at a fixed price, released 1,000 at a time each month.
Related terms
- Purchase order (PO)A purchase order (PO) is a buyer’s document ordering specific items, in specific quantities and at stated prices, from a supplier.
- Contract pricingContract pricing is a set of fixed prices agreed with a specific customer for specific items over a set period, after a negotiation, bid, RFP or GPO deal.
- Vendor-managed inventory (VMI)Vendor-managed inventory (VMI) is an arrangement in which a distributor or manufacturer keeps a customer’s stock filled to agreed levels.
- Original equipment manufacturer (OEM)An original equipment manufacturer (OEM) is a company that makes finished products or equipment, such as machines or vehicles, under its own brand.
