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Save money with blanket order discounts

  • EmpireEMCO
North America, USA

Blanket Order Discounts (BO)

A blanket PO, or purchase order, allows you to purchase goods or services at the most economical price level over a set period of time and for a set amount of time. A blanket PO adds certainty to a business. There are many advantages to blanket orders. 

Inventory

The BO makes it easier for the buyer  to calculate proper inventory levels and know when it is time to reorder supplies. The BO enables a buyer to better control costs by instituting cost-saving measures. 

Cost Savings

With a stable (resin +/- impact?) price for a fixed period of time, the PO serves as a hedge against inflation. The most economical price level offers savings over traditional bracket pricing

Certainty

Businesses like certainty. With a blanket PO, there is certainty for both the supplier and vendor regarding the cost of the goods or services. Both sides have certainty concerning quantity, price, delivery requirements and payment terms.

The Purchasing Process

This reduces time spent on repetitive orders and allows buyers to concentrate on other tasks. During the process, vendors may offer substitute items that might be better than the original.

See also

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  • Modified 29 JUN 2018
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