You can improve buyer efficiency and accuracy and potentially reduce procurement spending by using blanket purchase orders. Blanket purchase orders define a pre-determined price for a set quantity of items you will buy from a vendor during a time period. The blanket purchase order specifies the item, price, quantity, terms and effective time period.

During trading or long commitment with vendors/supplier, organisation is negotiating the prices and terms to be applied through a time horizon. This method is more practical than sporadically negotiating with a vendor for each order and can help ensure that you consistently get the best pricing from the vendor.

When orders originated from the blanket purchase order, any delivery schedule released by the buyer that falls within the effectivity dates of the blanket purchase order uses the contracted pricing and terms. The purchase orders associated with the scheduled deliveries can be released at the time the blanket purchase order is created or later, as needed. Future orders can be released either manually as determined by buyers or automatically based on item lead times and features you use, such as Demand Planning or Advanced Inventory Management.

Using NetSuite OneWorld the selected vendor record is shared with multiple subsidiaries, you can select any assigned subsidiary to associate with this blanket purchase order. The item price will be based on the selected vendor and all assigned subsidiaries.

Approval Routing Feature

After approval routing is set up, all expense reports and purchase requests must be entered through the Employee Center to maintain the hierarchy of approval routing. This includes employees with other roles.

For example, your A/P clerk has the ability to enter purchase requests in the A/P Clerk role. However, to maintain proper approval routing, your A/P clerk must change from the A/P Clerk role to the Employee Center to enter a purchase request. The A/P clerk’s supervisor can then approve the purchase request by logging in to the Employee Center.

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