Using blanket purchase orders allows you to submit orders to your vendors for large quantities and then release individual purchase orders against it with varying shipment dates. This is advantageous for any business in that it prevents you from holding excess stock in your warehouses, cuts down on administrative costs and the vendor may even offer volume discounts.
Free up your cash
Your sales forecast shows that you need to manufacture 10,000 PCs over the next twelve months. Spread out the purchase of the components by issuing a blanket purchase order and authorizing your vendors to ship them when you need them.
Cut down on your administrative costs
Instead of processing multiple purchase orders weekly or monthly for one time buys enter one blanket purchase order and release individual purchase orders against it.
Cut both your product costs and your lead times
Since your vendor knows what your projected demand is this may reduce the lead time to procure the product. You may also qualify for a discounted price through volume commitments or price breaks.
Track what’s pending to ship
Fitrix ERP provides a pending release report that you can run periodically (or have set up to run automatically at a time interval of your choosing) that will list all blanket purchase orders that have pending releases scheduled before a given date.