My company is considering using Blanket POs for repeat orders, but I’m concerned about potential issues. Are there any common challenges businesses face when using them? How do you avoid problems like over-ordering or price changes?
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Blanket POs offer convenience, but they come with risks. A major issue is over-ordering, especially if departments are not aligned on purchase tracking. Price fluctuations can also be problematic if the supplier revises pricing mid-agreement. Another challenge is contract enforcement—if terms aren’t clearly defined, disputes may arise. To mitigate these risks, businesses should regularly review Blanket PO usage, set clear spending limits, and use procurement software for tracking. For a deeper dive into managing these issues effectively, check out this blog that provides useful insights on best practices.