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  Best Practices: Contracting
Hone Contract Lengths and Stagger Expiration Dates

Traditional Best Practice
Most contracts 

Blanket policy 

Commodity price uncertain (decline expected)  

Most contract to:
--Leverage volume 
--Achieve non-unit price cost elimination 

Supplier/purchases investment required

 Long-term cost elimination possible 

 

Rationale
  • text
  • text

Details
Customize length to individual commodities and suppliers 

Best Practice | Case Study | Commentary



April 7, 2000
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