Skip to content
Menu
The Megaventory Blog
  • Home
  • Help
  • Partners
  • Customization
  • Have an account?
The Megaventory Blog

Blanket Order – Definition and Example

What Is the Definition of a Blanket Order?

The definition of a Blanket Order (also called “call-off order”) is an Order designed to cover multiple supplies or deliveries from/to a single company.

At Megaventory, any kind of Order can be a Blanket Order as long as for example you choose to Receive your products on Consignment rather than through a Purchase Bill.

receive purchase order in megaventory, purchase bill, receive on consignment, blanket order example

When Should You Use a Blanket Order?

Blanket Orders are used in these situations:

  • For a medium/long-term supply of the same products from the same supplier
  • For regular supplies of the same products from the same supplier
  • Delivery with an uncertain date
  • When the exact quantities are unknown until the delivery is made
  • When the packing and delivery processes cause price fluctuations
  • When the arrangement between your company and the supplier is flexible and the Order is used for control purposes only

Here’s a Simple Example

Let’s say that your company has made an agreement to deliver to Client A a certain amount of bottles of Ketchup over a span of 3 months – this is recorded in the Sales Order 1 (SO1).

Your main supplies are tomatoes, plastic containers and wrappings/labels. We’ll focus on the tomatoes for this example.

In theory, you could order all of them at the beginning of the production run. But do you have the capacity to store all those tomatoes AND in safe conditions?

Let’s say you don’t!

So what you can do is split the production process into 3 runs (one for each month), using 3 Production Orders associated with the Blanket Sales Order SO1: PROD-O1, PROD-O2, PROD-O3. 

The purpose of this is to receive 3 separate deliveries of tomatoes from Supplier A (one before each production run) so that you cut down on storage costs and make sure that the tomatoes don’t spoil. Each delivery will be recorded in a Receive On Consignment Document: ROC1, ROC2, ROC3. These three correspond to a single Blanket Purchase Order: PO1.

Here’s a representation of how all of these are linked:

Find Posts

Pages

  • Backend Developer Programming Internship at Megaventory
  • Digital Marketing Internship at Megaventory
  • Frontend Developer Internship at Megaventory
  • Human Resources Internship at Megaventory
  • Inventory Management Glossary: Terms & Definitions
  • Megaventory es tu mejor alternativa a TradeGecko
  • Megaventory est la nouvelle meilleure alternative à TradeGecko
  • Megaventory is your new better alternative to TradeGecko
  • Megaventory Newsroom
  • Technical Sales Internship at Megaventory
  • Write A Guest Post!

Integrations

  • Megaventory Is The New Powerup To Your WooCommerce Inventory
  • Megaventory And ShipStation Are Now Interconnected
  • Integrate Shopify With Megaventory
  • Explore The Best Magento Inventory Extension Out There!
  • The Best Inventory Management Software For QuickBooks Online

Awards

order management Megaventory

Write for us!

Follow Us!

Follow Us on FacebookFollow Us on TwitterLinkedInFollow Us on YouTubeFollow Us on RSS

Cloud Inventory Management, Order Fulfillment, Manufacturing Tracking

Megaventory Logo

ABOUT

Megaventory is a US company founded in 2010 – one of the first to offer online inventory and order management.

Megaventory Inc.
(A Delaware Corp.)
info @ megaventory.com
US +1 512-377-6991
PO Box 843, Allen
TX 75013, United States

Resources

  • Home
  • Help
  • Partners
  • Customization
  • Have an account?
©2023 The Megaventory Blog | Powered by WordPress and Superb Themes!