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Blanket purchase order (BPO) applet to secure lower bulk pricing based on total order quantity, even when multiple deliveries are needed over time. When making one order at a time over the course of a period of time, smaller quantities are negotiated. A blanket purchase order eliminates the need to secure sourcing, It specified quantities of the same goods or services are required throughout a set duration and negotiate for each order, which allows the procurement department staff to focus on important activities over repetitive tasks.
To include on purchase order should define the following
Billing information the vendor will submit invoices for payment
item specification including the expectation of quality, size, and quantity
delivery quantity, location, and time
cancellation clause