In delineating framework agreements, buyers should be aware of the effect of limited competition linked to repeated purchases of the same products by the same suppliers over a long period of time. It is therefore important that the benefit of establishing long-term partnerships is weighed against the advantage of opening up competition to potential new suppliers, in particular SMEs, in order to keep up with the continuous evolution of the market. Framework agreements should be concluded where the buyer needs to establish a strategic relationship with the supply chain over a long period of time, with suppliers able to adapt to the buyer`s requirements. The specifications and evaluation criteria shall be fixed in advance and may not be changed during the term of the agreement, from a minimum duration of 12 months to a maximum of 3 years. Subsequently, conditions and prices can be renegotiated to ensure that they correspond to changing market conditions. UNECE Recommendation 18 supports the implementation of such agreements. It also recommends that an intermediary providing trade and transport services within an international supply chain be, where appropriate, included in the framework contract between the supplier and the buyer under a separate contract (measures 1.1 and 1.2). Competition may be considered at regular intervals (e.g. B annually) for a framework agreement with a single supplier or to be open at all times where more than one supplier is concerned.
In the latter case, price offers will be requested from all parties and an order will be placed if necessary. There are many types of framework contracts that can be tailored to the specific needs of buyers. They should approach a framework similar to that of any other tendering or contracting possibility. You should invest time and resources to fully understand, including what the buyer wants and expects, appreciate the strengths and weaknesses of your competitors, and how you can seek a competitive advantage. Most importantly, frameworking is a long-term partnership between the vendor, customer, and other stakeholders, which creates the necessary work environment to support continuous improvement. Once you`ve secured a spot in a frame, you can`t just wait or expect the phone to ring. You still have to work hard to get your share! This can include networking at events held for suppliers or traditional distribution and marketing – but the up to it is that you`re already allowed to work with them.