Blanket orders are a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.

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Blanket orders are designed to provide a long-term purchase commitment to a supplier, allowing for short-term releases to ship. This is done to streamline the procurement process, reduce administrative costs, and ensure that the necessary inventory is available when needed. Essentially, the buyer and supplier work together to establish a set quantity of goods to be delivered over a specified period, with the supplier then responsible for delivering those goods in smaller batches as per the buyer's short-term release schedule.

Blanket Orders Are a Long-Term Purchase Commitment to a Supplier