Blanket Orders vs Supply Agreements - Which is Right for you?

Blanket Orders vs Supply Agreements - Which is Right for you?

What are Blanket Orders Agreements?

A blanket order is a purchase order that contains multiple delivery dates scheduled over a negotiated period of time. These types of purchase orders are used when there is a recurring need for goods, or where an ongoing requirement can be forecasted by the customer.

What are Supply Agreements?

A supply agreement is a binding document/contract that secures the promise to supply a specific quantity of goods over a certain period of time. A supply agreement has three options of the Method of supply. A. Min/Max Replenishment with quarterly review - Automatic B. Quarterly Forecast Replenishment - Automatic C. Purchase Order - Not Automatic Package All will provide strategic, tactical and operational services to procure, store and deliver the packaging goods listed in the agreement.

Does Package All Handle Blanket Orders and Supply Agreements?

Package All is happy to accommodate both blanket orders and supply agreements! Our Just-in-Time-Delivery System (JIT) will ensure you that you receive the product you need, when you need it. For Example: a customer needs 30,000 bottles each month, but the lead time on these particular bottles is 6 weeks. Package All can bring in a bulk order of 100,000 bottles at once, warehouse them, then release 30k each month the customer. This avoids the 6-week lead time (after the first order), and potentially reduces costs because of higher tier pricing. We also can and guarantee that the customer’s product is in stock to be delivered on time.

What are the benefits of Just-in-Time Delivery?

Our Just-in-Time Delivery System can benefit customers with Reduced Costs, Shorter Lead Times, and Reduced Stocking Requirements.

Reduced Costs: The blanket order allows each customer to closely control their costs. A great benefit of blanket ordering and supply agreements is a discount in pricing. When the customer orders in higher volumes it allows for price breaks that wouldn’t otherwise be available with smaller more frequent orders.

Shorter Lead Time: When materials are ordered in advance and secured for future use, this gives the customer control over inventory and prevents out of stock or back order issues that may hold up the delivery of necessary production components. Since the order is already placed in advance, there is no lead time for subsequent deliveries. Reduced Stocking Requirements: By having Package All store future shipments, customers save valuable warehouse space in their facility. Just-in-Time-Delivery will help reduce stock by warehousing future orders. While reducing the amount of stock carried, the customer reduces overhead and eliminates the time and expense of frequent ordering.

Does Package All have the warehouse space to hold my extra inventory?

Yes! We hold your bulk packaging inventory and ship it to you based on predetermined schedules. It’s just that easy and it works like clockwork. Just-in-Time Delivery works seamlessly because Package All owns and operates its own trucks, and our extended warehouse hours help to accommodate on-time deliveries. We have distribution centers on the East and West Coasts, with over 270,000 square feet of storage space to hold your rigid packaging. Our state of the art warehouses feature live inventory systems (WMS), computerized electronic wire guidance for narrow aisle picking and scan guns (for speed and accuracy).

So which is right for me?

Package All can help analyze your purchasing history to determine if either a blanket order or a supply agreement is the right choice for your company. While blanket orders are used for shorter periods of time, usually 3 to 6 months, a supply agreement is a longer-term agreement, usually lasting up to a year. Based on your annual production schedule or seasonal requirements, we can help obtain the best possible pricing for your needs. Please contact us online or by phone and to discuss this option.