Another difference between the two agreements is that sales contracts should ideally be signed before the completion of the work. Orders are only mandatory when they have been officially accepted. The acceptance of an order may involve the signing of a confirmation copy or the completion of the electronic acceptance. It can also be adopted by performance decision. It must take into account the supplier, not just the buyer. This is especially true for the supply of high-volume custom components. Most suppliers are willing to keep a buffer or safety stock, but efficiency is lost and costs increase when the customer advances frequent changes to the package order schedule. MRP favours the customer and not the supplier, and these changes are expected to be relatively rare and limited in scope. Hello, do you think That Blanket POs are successful for companies that change the price of suppliers every day (this is a service sector). The delivery of the total quantity of materials indicated in a delivery plan heading is spread over a specified period in a delivery plan consisting of lines indicating the different quantities with the corresponding expected delivery dates. When negotiating a framework order, the buyer and supplier evaluate the expected demand over time for an item or family of items.

Both parties agree on the terms of an agreement, including quantity discounts, required quality levels, delivery times and other important conditions. The framework order remains in force for the period indicated in the contract. This period is often, but not always, six months to a year. The requirement of the Tradeoff area is the purchase of raw materials and the customer is required to pay the cost of raw materials in case of cancellation of requirement. When accepting an order, a sales contract and an order are enforceable contracts and there is no longer any difference between the two. Realistically, at the end of the framework contract, the buyer would not purchase in the expected quantity, as agreed in the contract, for example.B. 80% of the request sent to the supplier. .

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