Blanket Order
A long-term purchase agreement with a supplier for repeated delivery of goods or services at pre-negotiated prices over a set period, without requiring individual purchase orders for each delivery.
A blanket order (also called a blanket purchase agreement or standing order) is a commitment to buy a specified quantity or value of goods from a supplier over a defined period — typically 6 to 24 months. Individual releases or call-offs are made against the blanket order as needed, streamlining the purchasing process for frequently ordered items.
Blanket orders benefit both parties: the buyer locks in pricing and reduces administrative overhead from repetitive PO creation, while the supplier gains demand visibility and revenue certainty. They are particularly valuable for MRO supplies, office consumables, and recurring professional services.
In practice: A hospital procurement team sets up a 12-month blanket order for surgical gloves with an estimated quantity of 50,000 boxes at €8.50 per box. Individual departments place call-offs as needed, each automatically referencing the blanket order terms without requiring separate approvals.