TSS - What is a Blanket Order?

What is a Blanket Order?

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First Published  :Tue Sep 16 16:56:19 GMT 2014
Last Modified  :Sun Dec 07 21:46:50 GMT 2014
Last Published  :Sun Dec 07 21:46:50 GMT 2014
Summary :  Describes a blanket order/requisition/purchase order

Response

Primary Information

    A Blanket Order (also known as a Standing Order) is a term contract or basic agreement between the University and a supplier. It is issued to a specific supplier to address recurring low dollar purchases of consumable supplies or services, for a specific period of time. A Blanket Order is issued to support an existing contract, or independently, after all terms and conditions have been negotiated.

    GUIDELINES FOR ALL BLANKET ORDERS

    A Blanket Order should be used when the ordering department/cost center will:
    • Purchase repetitive, specified services or items, or categories of items from the same supplier; which are purchased and paid in a predictable manner during a certain time period, usually one (1) year
    • Order standard materials or maintenance supplies which require numerous shipments
    • Enable the buyer to obtain more favorable pricing through volume commitments
     Blanket Orders generally should not be used when:
    • The primary purpose is, to provide an open line of credit with a supplier
    • Prices are unknown at ordering time, or subject to change later without notice
    • Quality of the supplier and/or services are questionable control over the University expenditures would be weakened significantly

    Annual Review

    It is recommended that prior to requesting a new Blanket Order [April-May]; the ordering department should review the existing Blanket Order for any changes.

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Keywords

    standing order