Jiga - Custom Parts Manufacturing

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What is a Blanket PO and how can it help you streamline your manufacturing operations?

blanket Purchase order

What is a ‘Blanket Purchase Order’?

A blanket purchase order, also known as a Blanket PO, Blanket Order, or Recurring Order, is a type of contract used in purchasing and supply chain management. It enables companies to procure goods or services from a supplier on an ongoing basis over a specific period of time.

Using a blanket PO can benefit companies that require recurring orders. By setting up a blanket PO, businesses can save time and money by streamlining the purchasing process, reducing paperwork, and avoiding the need to negotiate terms every time they place an order. Blanket POs can help companies manage their cash flow and inventory levels more effectively.

blanket po reduce paperwork

How is the ‘Blanket PO’ used in manufacturing?

When it comes to manufacturing, it’s common for engineers and manufacturers to use a blanket purchase order (PO) to streamline the process of reordering parts and materials.

Let’s say an engineer is designing a product, that is manufactured in CNC machining or Sheet Metal, and knows that they will need a specific part for the product over a long period. Rather than placing individual orders for the part every time it’s needed, the engineer can use a blanket PO to simplify the process.

With a blanket PO, the procurement team can place a single order for the entire quantity of parts they expect to need over a certain period, such as a year or a few months. This way, they can ensure that they always have enough of the part on hand without having to place multiple orders and potentially deal with delays or out-of-stock situations.

manufacturing operations

How can a Blanket PO help you negotiate better prices and terms with suppliers?

Using a Blanket PO can help you negotiate better prices and terms with suppliers since committing to purchasing a larger quantity of the part can result in cost savings over time. This is especially beneficial for businesses that aim to keep their expenses low.

According to our internal data, buyers who place a Blanket PO can potentially save up to 30% in hard-dollar costs compared to placing an individual order every time a need arises. This is not including the cost-saving on labor time, as placing one Blanket order saves a significant amount of labor time compared to issuing multiple purchase orders.


How can you manage your Blanket POs efficiently?

Managing Blanket POs can be essential to streamline procurement processes and ensure that your business has the resources it needs to succeed. Here are some tips to help you manage Blanket POs effectively:

  • Keep accurate records: It is crucial to keep accurate records of all Blanket POs, including the initial order, any changes made, and receipts or invoices for each delivery. This will help you stay on top of your inventory levels, track your spending, and identify any discrepancies or issues.
  • Set clear terms and conditions: When creating a Blanket PO, ensure to set clear terms and conditions, including the delivery schedule, pricing, and payment terms. This will help ensure that both you and your supplier are on the same page and avoid misunderstandings or disputes down the line.
  • Regularly review and adjust: As with any procurement process, it is essential to regularly review and adjust your Blanket POs as needed. This may include updating delivery schedules, adjusting quantities based on changes in demand, or renegotiating pricing with your supplier.
  • Use technology to simplify the process: Many procurement software solutions are available that can help you manage your Blanket POs more efficiently. These tools can automate the process of creating and managing Blanket POs, track inventory levels, and provide real-time insights into spending and supplier performance.


How can Jiga help you request, issue, and manage Blanket POs efficiently?

Jiga’s Blanket PO feature is a powerful tool that can help streamline procurement processes and make managing, issuing, and tracking Blanket POs easier and more efficient. With Jiga, buyers and suppliers can define terms and prices, get multiple quotes from suppliers, and choose the most competitive options.

A man with a beard and a white shirt smiling.
Javier L
trustpilot Jiga
Principal Systems R&D Mechanical Engineer
"Game changing in the online manufacturing space"
There are many companies are in the quick turn space, but Jiga stands out. Why? It’s so easy to quote with multiple vendors, view and track everything, set up a team and share information and have coverage when you’re on vacation. No other company in this space has nailed quoting, vendor communication and team capabilities like Jiga has. Add their great customer service and it’s a really great experience.
Jiga is the best way to get the parts you need, when you need them.
A screen shot of a timesheet featuring a blanket purchase order.

After a buyer approves a blanket PO, they can set the lifetime of the blanket PO and schedule orders as needed, ensuring that they always have the necessary resources on hand. Jiga can also be integrated with inventory management systems such as Katana, NetSuite, and SAP, streamlining the procurement process and providing real-time insights into inventory levels.

jiga integrations

There are several significant benefits to using Jiga’s blanket PO feature, including the ability for buyers and suppliers to collaborate more effectively. By defining terms and pricing upfront, both parties can avoid misunderstandings or disputes in the future. This enhances transparency and efficiency throughout the procurement process.

blanket po

Jiga’s blanket PO feature streamlines procurement processes and helps businesses save time and money while improving collaboration with suppliers. It provides a single platform for managing, issuing, and tracking blanket POs, enabling businesses to gain greater control over their spending.

Jiga blanket PO tool

Wrapping up

The blog post emphasizes the advantages of using blanket purchase orders (POs) in procurement, such as simplifying reordering, securing better prices, and enhancing collaboration with suppliers.

Efficient management of blanket POs entails maintaining accurate records, setting clear terms and conditions, regularly reviewing and adjusting the POs, and utilizing technology.

By adopting these best practices and leveraging Jiga’s blanket PO feature, businesses can cut down on time and expenses while guaranteeing a steady supply of resources for their operations.

A man in an astronaut suit holding an american flag.
Jerry S.
trustpilot Jiga
Mechanical Engineer
"The holy grail of good speed, quality, and price for custom parts"
So far, Jiga has been an unbeatable combination of speed, quality, and price! I really like the streamlined communication platform directly with vendors, and I appreciate the prompt attention of our account manager! I have sourced a variety of low-volume custom metal parts so far and it’s been a flawless experience.
Jiga is the best way to get the parts you need, when you need them.
Adar Hay
Adar Hay
Co-Founder and CEO of Jiga. Adar is a tech industry revenue leader with vast experience in product and marketing management. He's driving Jiga's mission to make parts sourcing frictionless.

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