Blanket Purchase Order
Also known as: Blanket PO, Standing order
A blanket purchase order is a single order that covers multiple deliveries of goods or services over a set period at agreed prices.
Instead of raising a new PO for every delivery, a blanket PO fixes prices and terms for recurring purchases across weeks or months, and releases are drawn against it as needed. This cuts administration for predictable, repeat requirements such as consumables or maintenance items.
Blanket POs usually specify a total value or quantity cap and an expiry date. They pair well with framework agreements and vendor managed inventory, giving buyers price certainty while reducing transaction volume.
Frequently asked questions
- What is a blanket purchase order?
- A blanket purchase order is one order covering multiple deliveries over a period at agreed prices, so recurring purchases can be released against it without raising a new PO each time.
- When should you use a blanket PO?
- For predictable, recurring purchases — consumables, maintenance items or regular services — where fixing prices and reducing paperwork over a period is valuable.
Related terms
Purchase Order (PO)
A purchase order (PO) is the official document a buyer sends to a supplier to confirm the order of goods or services at agreed prices and terms.
Read definitionFramework Agreement
A framework agreement is a long-term contract that sets agreed terms and pricing with one or more suppliers, from which specific orders are called off as needed.
Read definitionVendor Managed Inventory (VMI)
Vendor managed inventory (VMI) is an arrangement where the supplier monitors and replenishes a buyer's stock of an item, rather than the buyer raising orders.
Read definitionContract Purchase Order
A contract purchase order is a purchase order that references and draws on the terms of an existing contract between a buyer and supplier.
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