The Procurement Glossary » Blanket Purchase Order
Blanket Purchase Order
Procure-to-Pay
Also known as: Standing Order, Blanket PO
Definition
A single purchase order covering repeated deliveries of goods or services over a period, at agreed prices, released as needed.
Explanation
A blanket PO (or standing order) reduces paperwork for recurring buys: one order authorises many drawdowns within a value or time limit. It pairs naturally with framework agreements and call-off orders for predictable, ongoing demand.
Example
A blanket PO covers a year of monthly cleaning-supply deliveries up to RM60,000, with each delivery drawn against it.
Related terms
- Purchase Order (PO) — A buyer's official document authorising a purchase from a supplier, stating items, quantities, prices and terms; once accepted it forms a contract.
- Call-Off Order — An individual order placed against a pre-agreed framework or blanket agreement, drawing down on its agreed prices and terms.
- Framework Agreement — An umbrella agreement setting pre-negotiated prices and terms with one or more suppliers, from which individual orders are placed as needed.
Frequently Asked Questions
What is Blanket Purchase Order?
A single purchase order covering repeated deliveries of goods or services over a period, at agreed prices, released as needed. A blanket PO (or standing order) reduces paperwork for recurring buys: one order authorises many drawdowns within a value or time limit. It pairs naturally with framework agreements and call-off orders for predictable, ongoing demand.
Can you give an example of Blanket Purchase Order?
A blanket PO covers a year of monthly cleaning-supply deliveries up to RM60,000, with each delivery drawn against it.
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