What Is a Blanket Purchase Order

A Blanket Purchase Order (BPO) is the preferred method for placing orders which will require multiple payments over a period of time. Examples of BPO’s are: standing orders, maintenance/service contracts, and open orders.

What is the purpose of a blanket purchase order?

A blanket purchase order, a long-term contract with a specific supplier, helps businesses efficiently order the same shipment of goods from a single vendor at regular intervals. Such an order greatly simplifies logistics and planning for both companies, as multiple invoices can be categorized under a single blanket PO.

What do you mean by blanket PO?

A blanket purchase order also known as a standing purchase order is a long-term contract between an organization and a supplier to supply products or services at a fixed price regularly for a certain amount of time. … In turn, suppliers might send several invoices with the same BPO number.