Rate Contract (Paperback)

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. A Rate Contract or a Rate Agreement (RC in short) is a procurement cost reduction stategy aimed at standardizing procurement prices for commonly procured, homogenous and price varying inputs. A rate contract is usually attempted when a global sourcing effort is not feasible, due to financial or operational constraints. A rate contract is also typically established in inputs where the number of suppliers is large (where it is not a monopoly or an oligopoly). Rate contracts can be arranged at multiple levels by a large firm - in specific geography markets or at a national level or at a global level (if suppliers exist at differing scales) and in specific sub-categories, or in a range of sub-categories, or for a category, or for a related categories. The rate contract can also be established for a year or for multiple-years.