A vendor management contract is a document which outlines the terms and conditions agreed upon by a company and the agency which supplies the company with its chief material products. A vendor is a kind of middleman in the demand and supply chain, and ensures that the company receives the best products at the lowest possible prices from suppliers. Thus, a vendor’s role is extremely important and it needs to be clarified through the means of a vendor management contract.
Sample Vendor Management Contract:
The vendor management contract numbered 36466[ii] is hereby established between Simon and Sons Pvt. Ltd and Daniel Cleaver of Resources Pvt. Ltd.
Details of company:
Simon and Sons Pvt. Ltd. [hardware dealers]
34 Belvedere County Street
Details of Vendor:
Resources Pvt. Ltd.
34 Redwood Road
Nature of vendor offer:
- The vendor shall provide the company with hardware spare parts as mentioned in section 9 of the contractual agreement.
- The parts shall be delivered within the 5th of every month failing which, the contract is liable to be terminated, and monetary compensation may be charged from the vendor.
Payments and vendor fees:
- The company shall be required to deposit an initial contract amount of 1 million USD in the vendor’s account, and this has to be followed by quarterly payments of 500,000USD.
Duration of vendor management contract:
The contract is valid for a period of two years starting from 3rd June 2012 to 2nd June 2014.
Terms and Conditions:
All terms and conditions of this contract must be read and understood by both the company and the vendor. [Check Annex 1 and 2[i]]
Signature of company representative: _________________
Signature of vendor: __________________________