EA (Enterprise Agreement)

An Enterprise Agreement (EA) is a business agreement between an organization and a supplier that outlines the parameters, pricing, and terms of engaging in long-term relationships. An EA provides mutual risk mitigation for both parties by establishing common contractual ground rules and effectively streamlining the procurement process. It gives organizations the opportunity to benefit from bulk discounts and supplier-negotiated rates while locking in prices for up to 5 years. Through the use of EAs, companies can reduce overhead costs associated with procurement, drive operational efficiency, and achieve cost savings across functional groups.