What is a Framework Agreement (Rahmenvertrag)?

A Framework Agreement (German: Rahmenvertrag) is a long-term purchasing agreement between a buyer and a supplier that defines general terms and conditions for future individual transactions.

It typically covers:

• Prices or price ranges
• Quantities or call-off volumes
• Delivery terms and lead times
• Contract duration and renewal options
• Legal and commercial conditions

Framework agreements do not constitute an order themselves, but serve as the binding foundation for future orders, also called call-offs (Abrufe).

Why Use Framework Agreements in Procurement?

Framework agreements offer several advantages:

• Stable pricing over a defined period
• Faster ordering through pre-approved terms
• Planning security for both buyer and supplier
• Reduced negotiation effort for each transaction
• Better supplier relationships and commitment

🧠  Framework agreements are especially valuable in categories with recurring demand, such as IT hardware, facility services, MRO, and logistics.

How Does a Framework Agreement Work?

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Call-offs can be placed automatically via e-procurement platforms or manually via PO processes.

Types of Framework Agreements

Framework Agreements vs. Spot Buys

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🔎  Frameworks reduce manual overhead and promote procurement consistency.

Conclusion: Framework Agreements Enable Strategic Procurement

Framework agreements offer procurement teams the tools to streamline operations, secure long-term value, and enhance supplier relationships. When managed digitally, they become a key driver of strategic sourcing and risk mitigation.