A Source Contract is an agreement established between a buyer and supplier during the sourcing process. It defines the terms and conditions under which goods or services are procured, including pricing, delivery schedules, quality standards, and payment terms. In procurement and supply chain management, source contracts help streamline purchasing processes by providing clarity and setting expectations for both parties. They ensure legal compliance, mitigate risks, and establish long-term supplier relationships. By leveraging source contracts, organizations can drive cost efficiency, improve supplier performance, and maintain consistency, ultimately supporting the broader goals of procurement strategy and business operations.
Related Terms
Filter by
Maverick Spending
Maverick spending—also referred to as maverick buying, occurs when employees make purchases outside approved procurement processes, policies, or supplier contracts.
Supplier Lifecycle Management (SLM)
Supplier Lifecycle Management (SLM) — also known as Vendor Lifecycle Management — is the end-to-end, strategic management of a supplier
Purchase Requisition Software
Purchase Requisition Software is a digital solution that standardizes, automates, and governs the process of requesting goods and services before
eSourcing Software
eSourcing software is a digital platform that automates, standardizes, and governs the strategic sourcing process — from supplier discovery and
Invoice Approval Software
Invoice Approval Software automates the review, validation, and authorization of supplier invoices before payment. It ensures that every invoice is
Supplier Management System (SMS)
A Supplier Management System (SMS) is an integrated digital platform that centralizes, governs, and optimizes all activities related to suppliers
