A procurement contract is a legally binding agreement between a buyer and a supplier that defines the terms - pricing, volume, delivery, service levels, obligations - under which goods or services will be procured.
Common procurement contract types
Master Service Agreements (MSAs) for ongoing relationships, Purchase Orders for one-off buys, Statements of Work for defined deliverables, and Framework Agreements for pre-negotiated terms drawn against on demand.
The performance layer
Procurement contracts are only as valuable as their execution. Continuous performance management - matching contract terms against ERP transactions - converts the signed agreement into captured commercial value.
