What is true regarding Blanket Purchase Orders (BPOs) in Ariba?

Blanket Purchase Orders (BPOs) are a crucial tool in Ariba for managing recurring purchases over a specified period. When BPOs are created, they function similarly to traditional purchase orders but have the added benefit of being linked to a contract, allowing for a streamlined procurement process. This means that while BPOs are issued as purchase orders to suppliers, they are also aligned with contractual agreements.

This dual nature supports clarity in the terms of purchase and compliance with contractual commitments, which is essential for maintaining strong supplier relationships and ensuring that procurement processes adhere to company policies. By appearing as a contract, BPOs not only help in tracking budget and spending but also facilitate negotiations and variations in order quantity and delivery terms without necessitating the creation of multiple individual purchase orders.

Other aspects of BPOs, such as visibility to suppliers and modification capabilities, imply practical limitations that do not align with the core function of BPOs as tools designed for convenience and flexibility. Understanding this duality enhances the comprehension of how BPOs operate within the SAP Ariba Procurement framework and the role they play in effective supplier management.