Special Order Processing

During the day-to-day activities within a purchasing department, special needs exist that require different types of documents. The different types of documents include:

• Blanket purchase orders

• Quote orders

• Change orders

You use blanket orders when the organization repeatedly purchases an item or service. You create a blanket order based on a specified amount or quantity that has been projected to be used over a period of time, typically one year. As required, quantities are released from the blanket order and the system creates a purchase order. You use a blanket order to reduce the administrative costs associated with processing purchase orders and to streamline the procurement process. An example of a blanket order is 1,200 cases of shop towels used by the maintenance department throughout the year. The buyer then releases quantities of approximately 100 cases per month.

You use quote orders when you want to solicit a competitive bid for an item from a number of suppliers. The Request for Quote (RFQ) includes the quantity, specifications, delivery date, and response date needed. After suppliers return the RFQ, the buyer evaluates the information and awards the purchase order to the supplier that best meets the specifications of cost, delivery, and quality outlined in the RFQ. Quote orders can be directly generated from requisitions and, in turn, purchase orders can be generated directly from quote orders.

Change orders enable a buyer to change the original purchase order or contract. Change orders are important because they provide an audit trail about changes to the original purchase order or contract.