Approved Supplier/Lead Agreement
A client may issue approval to a supplier
on agreement to adopt pay and charge rates
that are consistent with the client's other
suppliers. Where commercial terms are identical
across the supplier base, quality of service
becomes the main criteria for competition.
A lead agreement can be used as a method
of giving a supplier 'a lead' with requirements
in recognition of a reduced agency mark-up.
Used as a method of accelerating growth
of businesses with clients where competition
is high and supplier's share of the business
is low.