A contract is an agreement between two parties to complete a specific task. It is really important to understand how your company contracts with your suppliers. This video explains the basic elements of a standard contract and describes several different applications for contracts in business.
- "It usually costs less to avoid getting into trouble … "than to pay for getting out of trouble." … So says Louis Brown, who is often called … the father of preventive law. … When it comes to managing contracts … in today's global business environment, … this is especially true. … You want to stay out of trouble, and the key … to effectively managing a business global relationship is … to start with a well-written contract. … But first what is a contract? … It's an agreement between two parties … to accomplish a specific task. … You can contract for the sale and purchase of property … or goods, or for the transfer of services. … One type of contract that is important to you … as a buyer is the purchase agreement. … Purchase agreements group similar items together, … for example office supplies. … It helps you to avoid the expense … of placing several small orders with the supplier, … and it also may give you price discounts based … on the volume of the agreement. … Typical purchase agreements include annual contracts, …
- Explain the purchasing process.
- Define purchase order.
- Describe the intent of a purchasing policy.
- Distinguish types of purchasing structures.
- List the steps of selecting a supplier.
- Identify enablers for success in worldwide sourcing.
- Perform price and cost analysis.
- Measure supply management performance.