Document background
A Preferred Supplier Agreement is utilized when an organization wishes to establish a long-term, strategic supply relationship with a key vendor while maintaining flexibility in purchase volumes. This document type is particularly relevant in the Malaysian business context, where it must comply with local commercial and competition laws while facilitating efficient supply chain operations. The agreement typically includes provisions for preferential pricing, priority supply status, performance metrics, and operational procedures. Used across various industries, from manufacturing to services, the Preferred Supplier Agreement helps organizations secure reliable supply sources while potentially achieving cost savings through volume commitments and streamlined procurement processes. The document addresses key aspects of Malaysian business practice while incorporating international best practices in supply chain management.
