Blanket Orders
Blanket Orders contain multiple delivery dates scheduled over a period of time for specific goods, sometimes at predetermined prices. Witco is normally issued a blanket order when there is a recurring need for expendable goods. Items are purchased under a single purchase order rather than processing a separate P.O. each time new supplies are needed.
Advantages of Blanket Orders
Negotiating a blanket order with Witco will dispense you from holding large inventories of goods, while avoiding the administrative expense of processing frequent purchase orders. Also, it can offer favorable discount pricing through volume commitments.
As for Witco, the advantage in signing blanket orders include better management of our supplies, as well as better planning of delivery and production cycles. Also, signing blanket orders can insure a more steady workflow, rather than producing / supplying large quantities of products at irregular intervals.
Blanket purchase orders should be considered when:
- There is repetitive purchase of specific goods and services from the same supplier, which are paid in a predictable manner.
- Orders require numerous shipment / excessive storage.
- To obtain favorable pricing through volume discounts.
- Supports a long-term relationship between your company and Witco.
Witco blanket orders format usually include the following information:
- The beginning and ending time period for the blanket order
- A cancellation clause
- Items and/or categories of items to be covered by the blanket purchase order
- The estimated quantity, including a maximum (if any)
- Prices and pricing arrangements
- Terms and billing arrangements
- Personnel authorized to issue order releases