BLANKET ORDER Meaning and
Definition
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A blanket order is a purchasing agreement between a buyer and a supplier that establishes predetermined terms and conditions for multiple future transactions. It serves as a contract or agreement that enables the buyer to make purchases from the supplier over a specified period or until a predetermined dollar amount is reached.
This type of order is particularly common when dealing with recurring purchases or regularly required goods or services. It streamlines the procurement process as it eliminates the need to negotiate terms for each individual purchase, thus saving time and effort. A blanket order often includes specific details such as the quantity, price, delivery schedule, and any applicable terms and conditions.
With a blanket order, the buyer may have the flexibility to adjust the quantities or make changes to the schedule within certain limits, allowing for adaptations based on changing requirements. It provides stability and consistency for both parties, facilitating long-term business relationships.
Blanket orders are commonly used in various industries such as manufacturing, construction, and healthcare. They can be beneficial in managing inventory and controlling costs. By establishing a blanket order, the buyer can ensure a steady supply of goods or services while taking advantage of negotiated pricing and terms with the supplier.
In summary, a blanket order is a purchasing agreement that provides prearranged terms and conditions for multiple future transactions, allowing for efficient and consistent procurement of goods or services over a specified period or dollar amount.
Etymology of BLANKET ORDER
The term "blanket order" is composed of two words: "blanket" and "order", each contributing to its overall meaning.
"Blanket" originally comes from the Old French word "blankete", which meant a woolen cloth. It later entered Middle English as "blanket" and referred to a large piece of material used to cover or wrap around something. The word evolved to encompass the concept of covering or encompassing a wide range of items or activities, leading to the metaphorical use of "blanket" in various contexts.
"Order" derives from the Latin word "ordo", which meant a row or arrangement. In English, "order" first appeared around the 13th century and referred to a command, instruction, or directive. Over time, it extended its meaning to include a request or instruction for goods or services.
