A master supply agreement sets the legal and commercial terms for repeated purchases of goods from a supplier. Purchase orders or releases normally define quantities, dates and item-level details.
How the control works
Align document precedence, specifications, forecasts, pricing, quality, delivery, warranties, intellectual property, compliance, continuity and termination.
| Area | What the record should show |
|---|---|
| Control | Align document precedence, specifications, forecasts, pricing, quality, delivery, warranties, intellectual property, compliance, continuity and termination. |
| Evidence | Retain the agreement, schedules, approved sites, amendments, purchase orders, deviations and active dispute record. |
| Tradeoff | Conflicting boilerplate on quotations and purchase orders can undermine the master terms if precedence is unclear. |
Evidence buyers should retain
Retain the agreement, schedules, approved sites, amendments, purchase orders, deviations and active dispute record.
Where the term is misused
Conflicting boilerplate on quotations and purchase orders can undermine the master terms if precedence is unclear.
Related definitions: supplier qualification, strategic sourcing, landed cost.
