Variants
When it comes to procurement, there are a few different variants that you should be aware of. Here is a quick definition of each:
Spot buying: This is when you purchase goods or services as and when you need them, without any sort of long-term contract in place. This is often seen as the most flexible option, but it can also be the most expensive.
Framework agreement: This type of agreement sets out the terms and conditions under which future purchases will be made. It can be used for both one-off purchases and on-going contracts, and can help to simplify and speed up the procurement process.
Call-off contract: This is an arrangement whereby an organization orders goods or services from a pre-approved supplier as and when they need them. This option provides more certainty than spot buying, but still allows for some flexibility in terms of ordering quantities and timelines.