Case Number 090044 - CUFS - Computerized Term Contract Buying
Contact: Geoffrey Pinski
Description: The best buying tool available for any large comprehensive
institution is the Annual Term Contract. In return for the
pooled buying power for a commodity or service, the bidding
vendors promise a fixed price and discount to the
institution, most often for the entire year. Purchase
discounts average thirty percent.
As important as fixed prices are in an inflationary economy,
and volume discounts are in any economy, convenience is the
value added with these computerized programs of term contract
- They limit contact with Central Purchasing Buyers to
those non-repetitive needs that cannot be predicted.
- They require vendors to carry stock for all users -
thereby reducing internal inventories.
- They assist in standardization of products.
- They abolish about half the purchase orders that would
otherwise be necessary.
- They assist user department with budgeting supply funds
for the year.
- They abolish individual bidding requisitions and
purchase lead-time delays.
- They permit an authorized user (operating department) to
issue their own release order in a matter of seconds.