Definition of automatic reorder

vendor marketing tool effected by a Blanket Purchase Order (BPO), whereby a company will order supplies to be restocked by the vendor on a regular basis without the necessity of placing a new order each time. An automatic reorder may take place at periodic intervals or when supplies have reached a specific predetermined minimum quantity. Periodically the company buying the supplies will become involved with the reorder process to assess and possibly revise the quantities, the automatic reorder items, or the intervals between reorders. Automatic reorders may be handled through the computer by preset data entries or manually by reorder clerks.