What are blanket PO's? Are they the type of Purchase Orders that textile factories and bedding manufacturer's create?
Well, they may use the term "blanket PO" in those specific industries for their products, but there is more general meaning. Buyers use it to indicate a single PO that contains information and approval to cover a certain dollar amount worth of goods or service and/or a certain time period.
Blanket PO's are used for convenience and efficiency. Sometimes they are used for high volume-low dollar transactions like office supplies. They are also used for set amounts of material that is delivered on a set schedule. This type is more likely to be found in a manufacturing setting.
If you are not using blanket PO's, consider it as they could save you time and soft dollar money as well.
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