Unless your business is an anomaly, it has been impacted by the supply chain shortages. According to data released by Resilinc — a global leader in supply chain risk monitoring space — disruptions caused by supply chain shortages were up 638% in the first half of 2021.
One way to overcome the inherent supply chain issues is for the manufacturing business to keep a larger inventory. While this may help ensure you have what you need on hand when you need it, generate bulk discounts, simplify the ordering process and approval process, the costs can greatly outweigh the benefits.
For instance, housing a large inventory can increase the cost of goods and increase storage costs while — most importantly— tying up much-needed capital and reducing cash flow. Instead, the better alternative is to implement a blanket purchase order with Frank Lowe.
When you have a blanket purchase order, you can rest easier knowing your components, parts, or products will be there when you need them. Let's take a closer look at the blanket purchase order as well as a few key benefits our customers enjoy when they implement a blanket purchase.
What Is a Blanket Purchase Order?
For most businesses, blanket purchase orders or blanket purchase agreements offer a streamlined approval process and an easier way to procure the necessary materials. Instead of having to initiate the ordering process every week, month or quarter, a blanket purchase order outlines an ongoing agreement between your company and Frank Lowe.
The blanket purchase order ensures you receive the necessary components on a recurring basis for a specified time period. A blanket purchase order is a feasible option for virtually all Frank Lowe's customers who have a recurring need for specific products.
For example, if you manufacture windows, you'll almost always need certain products, such as window separator pads or setting blocks. Instead of waiting until your supply runs low at the end of the month and going through the process of creating a single purchase order, a blanket purchase order would automatically process your standing order.
Best of all, when you use a blanket purchase order, you don’t run the risk of hearing we are out of Part Number XYZ and we are “LINE DOWN” because you agree with Frank Lowe on a predetermined delivery schedule.
Save Money in More Ways Than One with Blanket Purchase Orders
Blanket Purchase Order’s Lead to Lower Administrative Costs
When you use blanket purchase orders with Frank Lowe, you will have a single vendor offering you a highly competitive unit cost. By working with the same vendor, you can streamline your vendor management and generate savings on resources that would otherwise be used to negotiate conditions and terms with new suppliers.
At the same time, a blanket purchase order will negate the need to manage multiple delivery dates. Simply put, a blanket purchase order streamlines administrative functions while lowering costs.
Writing one purchase order versus weekly, monthly or quarterly purchase orders is just down right less labor and in return less costly. No need to continue to do the same work if you order it once and then it is DONE!
The Blanket Purchase Order Can Improve Manufacturing Efficiency
Few things are worse than having to halt production due to not having raw materials or a component. When you have a blanket purchase order with Frank Lowe, you can rest easier knowing the parts and components you need are on automatic production and a shipment schedule.
Every month or week based on your delivery schedule and delivery date, your components and parts will arrive as scheduled. At the same time, a blanket purchase order can help increase the efficiency of your administrative function.
Instead of having to order the same parts or components every month, your time can be better spent on more profit-generating activities. With a blanket purchase order, you only need one contract and a single negotiation for a year of product.
At Frank Lowe, we customize your blanket purchase order to meet the unique needs of your organization.
Improve Your Customer Satisfaction with a Blanket Purchase Order
Although everyone is well aware of the supply chain shortages, your customers and clients you serve expect business as usual. One way you can meet this demand and set your business apart from the competition is with Frank Lowe's blanket purchase orders.
With blanket purchase orders, your customers will appreciate the fact they can rely on you to deliver as promised. And because you don't need to search for a new supplier and select one every time you order raw materials or components, you can shorten lead times.
Blanket purchase orders equate to better service for your customers.
Contact Frank Lowe Today
In the end, having a blanket purchase order makes everything easier and helps your business run smoother. At Frank Lowe, we will adjust the contract terms and contract periods of your blanket orders based on your unique needs.
Since blanket purchase orders also help us plan and forecast, we are able to offer highly competitive rates as well as bulk order pricing. Just because the world is struggling with supply chain issues doesn't mean you have to.
Contact Frank Lowe today to simplify your procurement process with blanket orders.