Understanding Blanket Orders

Understanding Blanket Orders

Overview

In sales and procurement, Blanket Orders are a strategic tool that allows businesses to manage large volumes of orders efficiently. A Blanket Order is essentially a long-term agreement between a buyer and a supplier, where the buyer commits to purchasing a specific quantity of goods or services over a period of time at pre-negotiated rates. In iVendNext, Blanket Orders are a powerful feature that helps businesses streamline their procurement and sales processes, reduce administrative overhead, and take advantage of bulk pricing. This article provides a comprehensive guide to understanding, creating, and managing Blanket Orders in iVendNext.



1. What is a Blanket Order?

A Blanket Order is a type of purchase or sales order that covers multiple deliveries over a specified period. It is commonly used in scenarios where a customer or supplier agrees to a long-term contract, and the exact delivery dates and quantities are not known at the time of order creation. Instead, the buyer or seller issues a Blanket Order, and individual Sales Orders or Purchase Orders are generated as needed.


Key Benefits of Blanket Orders

  • Cost Savings: By committing to a large volume of goods or services, businesses can negotiate better rates with suppliers.

  • Reduced Administrative Work: Instead of creating multiple individual orders, businesses can manage a single Blanket Order and generate sub-orders as needed.

  • Improved Planning: Blanket Orders help both buyers and suppliers plan their inventory and production schedules more effectively.



2. When to Use a Blanket Order

Blanket Orders are particularly useful in the following scenarios:


  • Long-Term Contracts: When a customer or supplier agrees to a long-term contract with multiple deliveries over time.

  • Bulk Purchasing: When a business wants to take advantage of bulk pricing or discounts.

  • Seasonal Demand: When a business needs to secure inventory in advance for seasonal peaks.

  • Just-in-Time Inventory: When a business wants to minimize inventory holding costs by ordering goods as needed.



3. Creating a Blanket Order in iVendNext

Creating a Blanket Order in iVendNext is a straightforward process. Follow these steps to create your first Blanket Order:


3.1 Prerequisites

Before creating a Blanket Order, ensure that the following are set up:


  • Customer or Supplier: The customer (for sales) or supplier (for purchases) must be added to the system.

  • Items: The products or services covered by the Blanket Order must be available in the item master with proper pricing and stock details.

  • Validity Period: Define the start and end dates for the Blanket Order.


3.2 Step-by-Step Guide to Creating a Blanket Order

  1. Navigate to Blanket Orders:


  • Go to Home > Selling.

  • Click on the Blanket Order shortcut to access the Blanket Order list.


  1. Create a New Blanket Order:


  • Click on the New button to create a new Blanket Order.

  • Select the Order Type (Sales or Purchasing).

  • Choose the Customer (for sales) or Supplier (for purchases).


  1. Set Validity Period:


  • Specify the From Date and To Date to define the validity period of the Blanket Order.


  1. Add Items:


  • In the Items Table, enter the items, quantities, and rates covered by the Blanket Order.

  • You can also specify Terms and Conditions for each item.


  1. Save and Submit:


  • Click Save to save the Blanket Order as a draft.

  • Once all details are confirmed, click Submit to finalize the Blanket Order.



4. Managing Blanket Orders

Once a Blanket Order is created, you can manage it efficiently using iVendNext’s robust features. Here’s how:


4.1 Generating Sales Orders or Purchase Orders

  • From a submitted Blanket Order, you can generate individual Sales Orders (for sales) or Purchase Orders (for purchases) as needed.

  • The Ordered Quantity field in the Blanket Order will be updated automatically as sub-orders are created.


4.2 Tracking Order Fulfillment

  • Use the Dashboard to track the status of all Sales Orders or Purchase Orders generated from the Blanket Order.

  • Monitor the Ordered Quantity and Pending Quantity to ensure timely fulfillment.


4.3 Closing or Reopening Blanket Orders

  • Once the validity period of the Blanket Order has ended, you can Close it to prevent further orders from being generated.

  • If needed, you can Reopen a closed Blanket Order to generate additional orders.



5. Key Features of Blanket Orders in iVendNext

5.1 Validity Period

  • Blanket Orders have a defined From Date and To Date, ensuring that orders are only generated within the agreed timeframe.


5.2 Multiple Sub-Orders

  • You can generate multiple Sales Orders or Purchase Orders from a single Blanket Order, reducing administrative overhead.


5.3 Real-Time Updates

  • The Ordered Quantity field is updated in real-time as sub-orders are generated, providing an accurate view of order fulfillment.


5.4 Integration with Inventory and Accounting

  • Blanket Orders integrate seamlessly with the inventory and accounting modules, ensuring real-time updates to stock levels and financial records.



6. Best Practices for Using Blanket Orders

  1. Negotiate Favorable Terms: Use Blanket Orders to negotiate better rates with suppliers or offer discounts to customers.

  2. Plan Ahead: Use Blanket Orders to secure inventory in advance for seasonal peaks or long-term projects.

  3. Monitor Fulfillment: Regularly track the status of sub-orders to ensure timely delivery and payment.

  4. Leverage Reporting: Use iVendNext’s reporting features to analyze the performance of your Blanket Orders and identify areas for improvement.



7. Conclusion

Blanket Orders are a powerful feature in iVendNext that can help businesses streamline their sales and procurement processes, reduce administrative overhead, and take advantage of bulk pricing. By following the steps outlined in this article, you can efficiently create, manage, and track Blanket Orders, ensuring timely fulfillment and improved planning.


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Whether you are a small business or a large enterprise, iVendNext’s Blanket Order management features are designed to support your long-term sales and procurement strategies. With advanced features like real-time updates, multiple sub-orders, and seamless integration with inventory and accounting, you can take your business operations to the next level.


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