Blanket order

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A blanket order is defined as an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, sometimes at predetermined prices. It is normally used when there is a recurring need for expendable goods. Hence, items are purchased under a single purchase order (P.O) rather than processing a separate P.O. each time supplies are needed.

Having a blanket order dispenses the customer with holding large inventories and avoids the administrative expense of processing frequent purchase orders, while favoring discount pricing through volume commitments.