For companies struggling with supply chain dilemmas, one of the solutions we offer is blanket purchase orders to help ensure a reliable stream of components. To understand whether a blanket purchase order is right for you, you need to understand how they work.
- What does a blanket purchase order entail?
- When you place a blanket purchase order with us, you are requesting a specific optical component that you would like us to ship at intervals. We commit to providing those parts at the frequency you need them, which can be spaced weeks or months apart. Once you place your order, we manufacture the components at the best quantity and cost available. Unlike most vendors, we can usually arrange to stock your part at our facilities. Going forward, we can ensure that your parts are on hand whenever you need them.
- What are the advantages of a blanket purchase order?
- Blanket purchase orders can save money and protect your supply chain. By placing larger orders for your parts, you reduce the per-part cost, and you also eliminate the cost of maintaining a standing inventory. Furthermore, you have peace of mind knowing that your parts are always available to be pulled in and that the price will not fluctuate.
- Which customers benefits most?
- Blanket purchase orders are not for everyone. Sometimes multiple small-quantity orders are preferable because the customer can "pay as they go" with the freedom to modify the part specifications. Generally speaking, blanket purchase orders best suit customers who have completed an optical design and need a small quantity of expensive or hard-to-find prototype components, with the expectation of needing more of those parts in the future at regular or irregular intervals. For example, a customer performing research and development may only need one or two lenses at present but will require a reliable supply chain once the product is commercialized.
At Ross, we will work with you to find the purchasing solution that is the best match for your inventory needs. Unlike other optical suppliers, we are willing to perform blanket purchase orders for small quantities and unusual parts. Contact us to discuss your supply chain concerns and how we can help.
Download: Supply Chain Process Improvement Guide: