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What is a Blanket Purchase Order?

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Question added by Ali Mohammed , Senior Subcontracts Administrator , Vinnell
Date Posted: 2015/12/07
Ammar Farooqui
by Ammar Farooqui , Digital Marketing Manager , Xpertin

Blanket Purchase Order is an agreement that includes mostly 

i) Description of the items needed

ii) Unite price

iii) Contractual provisions

 

Blanket purchase order number is only set up one time, however it allows multiple releases against it at different times throughout a set time period.

 

A blanket order is used when multiple purchases are made of the same item or when items quantities are undetermined until usage is established.

Esherbiny Ahmed
by Esherbiny Ahmed , Asistant Marketing Manager , Holiday Inn Hotel

A blanket order is a purchase order the customer makes with its supplier which contains multiple delivery dates over a period of time, often negotiated to take advantage of predetermined pricing. It is normally used when there is a recurring need for expendable goods.

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