Purchase order example · Manufacturing

Blanket Purchase Order Example for Raw Materials

A 5-page blanket purchase order for a manufacturer: steel, aluminum and stainless sheet and plate, fixed prices, three monthly releases and material specs.

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At a glance

This example in numbers

About this example

This example is a blanket purchase order a sheet-metal fabricator sends its metals stockholder for a quarter's raw materials. It commits to six materials, from hot-rolled and cold-rolled steel sheet to aluminium, stainless and A36 plate, at prices fixed until the end of March, and calls them off in three monthly releases.

A blanket order only works when both sides know what is fixed and what can move. So this one explains how the blanket works and how much a release can change, gives a release schedule with the quantity and value of each delivery, and states the flatness, finish and certification each material needs. It lists the paperwork and load requirements for every delivery, sets terms for prices, rejected material, invoices and tax exemption, and asks the supplier to sign and acknowledge.

Who it is for

Manufacturers, fabricators and machine shops that buy raw materials from a stockholder or mill on blanket orders with scheduled releases.

Inside and how to use it

What this example contains, and how to make it yours

What's inside

  • A photo cover and the order at a glance: value, releases, payment and flex
  • How the blanket order and changes to releases work
  • Six sheet and plate lines with nominal weights
  • A release schedule with quantities and value by month
  • Material requirements and checks for every delivery
  • Purchase terms and supplier acknowledgement

How to adapt it

  • Say plainly that each release is a delivery, not a new order
  • Show the value of each release so the supplier can plan credit
  • Ask for mill test certificates that match the heat numbers
  • Set how much a release may move and with how much notice

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