supply-agreements

Vocabulary Word

Definition

A 'supply agreement' is a formal contract between a buyer and a supplier. The supplier promises to sell certain products or services to the buyer, and the buyer pledges to buy them under agreed terms, such as price and delivery date.

Examples in Different Contexts

In the pharmaceutical industry, supply agreements are critical for drug availability. A pharmacy director might note, 'Through our supply agreements, we ensure a steady supply of life-saving medications.'

Practice Scenarios

Creative

Scenario:

We're pushing the boundaries of our designs this season. It's essential to source exceptional materials that reflect our creativity.

Response:

We should establish a reliable supply agreement with a provider who can meet our standards and creative vision.

Operational

Scenario:

We're facing intermittent delivery delays in the north region. It might impact our commitment towards customers.

Response:

Let's review our current supply agreements. Perhaps we can find a logistics provider with better capabilities in the north region.