A blanket sales order is used when a customer has committed to buying large quantities at a set price over a given period of time and usually has an expiration date associated with it. Businesses find this type of purchase commitment useful in that it helps them with their material planning and forecasting.
Aids in materials planning and forecasting
The Fitrix MRP generation program extracts future unreleased demand from blanket sales orders. It then calculates the component quantities needed to produce the items and recommends they are added to either a planned purchase or production order depending upon the components currently on hand. The source of the demand is listed as “Sales Blkt” so it is clear where it is coming from.
Provides an audit trail for deliveries
When a release order is created from the blanket order the sales order number assigned to it is the blanket order number followed by the release number (i.e. -1 for the first release, -2 for the second release, etc.). This allows you to easily see all shipments generated from the blanket order.
Keep track of remaining shipments and blanket expirations so you can fulfill your customer’s delivery schedule.
Fitrix ERP includes two reports that are useful in tracking blanket orders.The Blanket Order Release Status report is used to identify upcoming releases that need to be processed. The Blanket Order Expiration report is used to identify active blanket orders that are about to expire. Once a blanket order has reached its expiration date the customer can no longer request deliveries against it unless both parties agree to extend the date.