Document background
The Preferred Supplier Contract is designed for organizations seeking to establish and maintain strategic supply relationships in the Philippines. This document is particularly useful when a company wants to secure reliable supply channels with preferential terms while ensuring compliance with Philippine law, including the Civil Code, Competition Act, and Consumer Protection regulations. The contract typically includes detailed provisions for pricing mechanisms, quality standards, performance metrics, and volume commitments, making it suitable for businesses with regular, substantial procurement needs. It's commonly used in situations where the buyer wants to consolidate their supplier base, obtain better commercial terms through committed volumes, and establish standardized processes for procurement. The agreement balances the need for commercial flexibility with the security of a long-term supply arrangement, while incorporating necessary safeguards and compliance measures required under Philippine jurisdiction.
