What is a Supplier Agreement?

A supplier agreement is a legally binding contract between parties where one party agrees to provide agreed-upon goods and services to the other.

Key Components of a Supplier Agreement

Business model map. · Shared vision and statement of intent. · Workload allocations. · Specific and measurable outcomes. · Performance management. · Optimizing pricing models and their incentives. · Relationship management. · Transformation management. · Exit management. ‘ · Specific concerns or requirements.

Types of Supplier Agreements

· Purchase agreements. · Master Supply Agreements or MSA. · Service Level Agreements or SLA. · Distribution Agreement. · Manufacturing Agreement. · Outsourcing Agreement. · Non-Disclosure Agreement or NDA. · Framework Agreements.

Challenges in Supplier Agreements

1.Not looking into the track record of the supplier. 2. Overlooking the overall business culture. 3. Creating a communication gap. 4. Maintaining non-transparency during the process.

And that’s a wrap! That’s all you have to know about supplier agreements. However, let us know if we have missed out on any point.

Final Thoughts