Framework contracts define the price and terms of payment and often include purchase obligations. Delivery plans are described together with any penalties for non-compliance with delivery and quality obligations. Administrative details include purchasing protocol and processes for modifying or terminating the agreement For most companies, building strong and mutually beneficial long-term relationships with strategic management of supplier relationships is a decisive step in improving performance throughout the supply chain, improve cost-effectiveness and enable the company to grow and expand. In accordance with UC guidelines and applicable local, government and federal laws and regulations, SCM UC executes and manages assignment and campus agreements to serve and protect the university in the procurement of goods and services. As stated above, most providers define the benefits of their customers according to the above criteria. The customer saves money and shortens the delivery of critical parts. But doesn`t the customer also save freight? Don`t these contracts also help reduce the customer`s own storage costs? Doesn`t the customer solve the problems related to obsolescence and damage to inventory? Ultimately, if you keep inventory for your customers, aren`t you also helping to reduce the cost of financing inventory? It`s you. For certain supply contracts, in particular for raw materials such as coal or sand, the contract may reasonably provide for independent control of the materials. And if the supplier is a wholesaler, the contract may require that the models be supplied in advance if the supplier wishes to purchase goods from a new manufacturer….