Amount of framework agreement
The amount of the master agreement determines the share of the material volumes established by long-term contracts (including regular supply contracts and "on call" orders) in the total volume of all materials.
Short description
This factor is calculated by dividing the quantity of materials sold with framework agreements by the total quantity of all materials sold. In addition to the value consideration, a quantity consideration is also possible, in which the number of suppliers with whom framework agreements are concluded is compared with the total quantity of all suppliers.
The amount of the framework agreement is also an important indicator for the necessary contribution made by the procurement department, because with long-term orders the effort compared to spot orders is significantly reduced (e.g. EDI connection with suppliers, exact specification of materials to be ordered, etc.).
Designs
Amount of framework agreement [%] = amount of framework agreement materials purchased [€] x 100 / total amount of materials purchased [€].
Amount of framework agreement [%] = number of suppliers with framework agreements x 100 / total number of suppliers