Conference organizers often use preferred supplier agreements and there are some pros and cons. For example, venues and event providers often hide details about their trade agreements. Often, there is no transparency with customers. Clearly describe their terms and expectations (z.B. do you expect high order discounts?) and give your suppliers the opportunity to read their terms. If you know that an organization already has a preferred supplier contract with another party, you should be prepared to impress your potential customer if you want to win a contract with them. The process doesn`t stop once you`ve reached an agreement with a supplier and you`ve officially added it to your favorite supplier list. You need to get feedback from buyers on the effectiveness of the program. Will your organization.B s expenses gradually be geared towards your preferred suppliers? Does the program make life much easier for buyers? A Preferred Supplier Agreement (EPI) is an agreement between a company and one of its third-party suppliers.

These agreements often have a wear and tear clause that ensures that the organization meets contractual obligations. B, such as the provision of food, drinks and withdrawal rates. This reduces the risk and exposure of the supplier. Explain to your selected suppliers the value of your preferred supplier program. For example, as a preferred supplier, they have additional business opportunities and a number of mutual benefits, such as the conclusion of a shorter contract. B, less risk and pre-negotiated prices. For this reason, each organization should consider implementing a preferred supplier program. This means compiling a list of your best suppliers to prioritize expenses – these suppliers have been carefully checked and evaluated before being put on your list of preferred suppliers. The main drawback of establishing a preferred supplier list is that it could limit your company`s creativity, innovation and flexibility. It is important that those responsible for compiling this list fully understand the needs of the company and the specific objectives of different category managers. Keep this in mind when identifying suppliers for your preferred supplier list and make sure you don`t exclude SMEs or diverse and minority businesses.