Contracting Strategy in Supply Chain

In the Supply chain contracting strategy is most important part, We have to make the plan which items, from where and when and how to buy in future we have to do assessment so it can be help to meet R7.

There is 3 phase of procurement

1. Pre- Procurement
2. Procurement process
3. Contract & Supplier Management

And contracting strategy is under the Pre- Procurement.Firs we have to know which type of items going to buy for which purpose than we have to analysis the market situation and find out the possible supplier in current situation.

We can separate the process as per nature of buying strategy.

1. Ad- hoc purchase - For goods not procure regularly where there is no benefit in having contract
2. Approved Supplier- For goods where quality is critical in deciding which supplier should be allowed to bid 
3. Supplier Contract/ Frame work Agreement/ Long term Agreement- For goods which is continually procure in future  but quantity and date are unknown but price and delivery time is fixed

By using this process and strategy organization can deliver the goods in time to get the best result in future. And it's direct related with organization success.