Blanket Purchase Order

A Blanket Purchase Order (BPO) is a strategic procurement tool used by companies to manage repeated purchases from a single vendor. Instead of creating individual purchase orders for each transaction, a BPO allows businesses to establish a contractual agreement for a set quantity of goods or services over a fixed timeframe.

This method improves efficiency, reduces administrative burden, and ensures cost savings through bulk pricing. In corporate travel and expense management, BPOs can be applied to airline ticketing, hotel stays, or transportation services for frequent travelers within an organization.

By using a BPO, businesses can simplify vendor payments and budget forecasting. However, managing a BPO requires careful monitoring to avoid overspending or underutilization of pre-approved budgets.