A purchase order is a binding contract between you, as an organization, and your supplier stating that you will buy a certain number of products or services from them under set conditions.

A purchase order is an important part of any defined procurement process and ensures that you obtain products or services from the right suppliers at the right price and quality. A purchase order serves more than one purpose. Not only does it act as a document that records and informs suppliers about what is needed when, but it also allows internal stakeholders to know what is expected from any particular supplier.

A Blanket Order is an order from a customer to procure products or services for specific items over a period of time at pre-negotiated rates. Blanket orders can also be used to procure products or services from a supplier over a period of time. A delivery schedule is also shared along with the blanket order.