What Is a Blanket Order?
A blanket order (also called a framework agreement) is a long-term purchase commitment with a vendor for a specified quantity or amount over a defined period. Instead of negotiating prices for each individual purchase, you agree on terms upfront — typically getting better pricing in exchange for a volume commitment. Individual orders (call-offs) are then placed against the blanket order as needed. Odoo supports blanket orders through the Purchase Agreements feature.
When to Use Blanket Orders
Blanket orders make sense when you regularly purchase the same products from the same vendor, when volume commitments earn significant price discounts, when you want to lock in prices against future increases, when you need guaranteed supply and priority allocation from the vendor, or when you want to simplify the purchasing process for routine items. Common industries using blanket orders include manufacturing (raw materials), retail (seasonal stock), and maintenance (spare parts and consumables).
Odoo Configuration
Enable Purchase Agreements
Go to Purchase → Settings and enable Purchase Agreements. This adds the ability to create blanket orders and calls for tenders (RFQs sent to multiple vendors competitively). Two agreement types are available: blanket orders for committed volume agreements and calls for tenders for competitive bidding processes.
Creating a Blanket Order
Navigate to Purchase → Orders → Purchase Agreements. Create a new agreement, select Blanket Order as the type, and fill in the vendor, agreement period (start and end dates), and product lines with agreed quantities and prices. The agreement can specify whether quantities are a commitment (must be ordered) or a maximum (cannot exceed). Once confirmed, the blanket order is active and call-off orders can be created against it.
Call-Off Orders
When you need to order products covered by a blanket order, create a call-off order (regular purchase order) from the blanket order. Odoo pre-fills the product, price, and vendor from the agreement. You specify only the quantity needed now and the delivery date. Each call-off order reduces the remaining quantity on the blanket order. Buyers can also create regular POs and link them to the blanket order manually.
Tracking and Monitoring
| Metric | Description | Action Required |
|---|---|---|
| Committed quantity | Total agreed in the blanket order | Reference only |
| Ordered quantity | Sum of all call-off orders | Monitor progress |
| Remaining quantity | Committed minus ordered | Plan future call-offs |
| Agreement expiry | End date of the agreement | Renew or renegotiate |
| Price compliance | Call-off prices vs agreed prices | Flag deviations |
Price Management
Blanket orders lock in prices for the agreement period. When market prices rise, your agreed price protects your margins. When creating call-off orders, Odoo automatically applies the blanket order price. If a buyer tries to create a PO with a different price, the variance is visible for review. Some agreements include price escalation clauses — Odoo allows updating prices on the agreement if terms change.
Agreement Renewal
Before a blanket order expires, review performance and negotiate renewal terms. Odoo shows the fulfillment rate — what percentage of the committed volume was actually ordered. High fulfillment rates strengthen your negotiating position for better terms. Low fulfillment rates may lead to penalty discussions or reduced commitments in the renewal. Create a new blanket order for the next period with updated quantities and prices.
Calls for Tender
For new purchase categories or periodic vendor evaluation, use Calls for Tender. Create a tender specifying your requirements and send it to multiple vendors. Each vendor submits a quotation through the Odoo portal or by email. Compare responses side by side on price, lead time, and terms. Select the winning vendor and convert the tender into a blanket order or direct purchase order.
Best Practices
- Realistic commitments — Base blanket order quantities on historical consumption plus anticipated growth. Over-committing creates liability.
- Regular reviews — Review blanket order utilization quarterly to catch under or over-consumption early.
- Clear terms — Document all terms including price escalation triggers, minimum call-off quantities, and delivery lead times.
- Multiple agreements — Maintain blanket orders with backup vendors for critical materials to avoid supply disruption.
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