Certified Professional Public Buyer (CPPB) Practice Test

What is the purpose of blanket orders?

1. To purchase a single item at a time

2. To secure long-term contracts with suppliers

3. To agree on purchasing a given quantity of specific goods

4. To manage all purchasing through a central authority

The correct answer is: To agree on purchasing a given quantity of specific goods

The purpose of blanket orders is to agree on purchasing a given quantity of specific goods over a specified period. This method allows for greater efficiency in procurement, as it simplifies the purchasing process by setting predefined terms and quantities, enabling buyers to order items as needed without the necessity to negotiate individual purchase agreements each time. It streamlines supply management, especially when dealing with items that are regularly needed, allowing organizations to benefit from potentially lower prices and improved supplier relations due to the commitment involved in blanket orders. This approach can result in savings on administrative costs and better inventory management, as it typically outlines a set quantity and price for a specified duration, providing predictability for both buyers and suppliers. In contrast, the other choices do not accurately capture the full intent or scope of blanket orders. For example, purchasing single items at a time does not align with the concept of blanket orders, which focus on bulk agreements. Securing long-term contracts with suppliers is broader than blanket orders and does not specifically refer to purchasing specific goods in predetermined quantities. Managing all purchasing through a central authority relates more to organizational structure than to the distinct nature of blanket orders themselves.