DC (Designated Contract)

Designated Contract (DC) in procurement is a business term used to identify a preferred supplier. This designation is applied to the suppliers who provide the most advantageous goods and services to a particular organization, based on set criteria such as cost savings, quality performance, reduced lead times, and increased operational efficiency. By favoring this select group of suppliers, organizations can benefit from both the financial advantages and the enhanced service they offer. In essence, Designated Contracts are designed to optimize an organization’s supply chain and streamline the procurement process.