Document background
The Preferred Vendor Agreement is a crucial commercial document used when a company wishes to establish a strategic relationship with a key supplier, offering preferential status in exchange for favorable terms and committed service levels. This agreement, governed by German law, typically arises from a successful existing business relationship where both parties seek to formalize and enhance their cooperation. The document addresses key aspects such as preferred pricing, priority service, volume commitments, and operational procedures, while ensuring compliance with German commercial law (HGB) and competition law (GWB). It's particularly valuable for companies looking to streamline their procurement processes, secure reliable supply chains, and benefit from economies of scale. The Preferred Vendor Agreement also typically includes provisions for performance monitoring, relationship management, and escalation procedures, making it a comprehensive framework for managing strategic supplier relationships.
