Basware (Nasdaq: BAS1V) is enriching its Marketplace procurement technology with the introduction of a framework agreement functionality. A framework agreement enables business users to initiate a
Basware (Nasdaq: BAS1V) is enriching its Marketplace procurement technology with the introduction of a framework agreement functionality. A framework agreement enables business users to initiate a mini competition for catalogue items between a pre-defined set of registered and contracted suppliers so that they may obtain the most favorable pricing and terms.
With the introduction of a framework agreement, Basware’s customers have access to more comprehensive operational sourcing options in Marketplace. A framework agreement is a contract with multiple suppliers who have been pre-approved by the buying organization to supply goods or services. The framework may, optionally, be split into multiple lots that are more specific to the products supplied.
“We have seen that customers usually have a strong process for strategic sourcing, but there are gaps when it comes to operational sourcing and a framework agreement is a way to address those gaps,” says Sami Peltonen, Vice President of P2P Solutions, Basware. “Let’s take software development as an example. An organization might have two or three different suppliers that have already been contracted by the procurement department for this purpose. And each time there is a specific project, the business can leverage the framework agreement functionality to reach out to the different suppliers, provide the scope of the project and request the suppliers submit their proposals. Then, the business user can select a supplier based on their specifications – for example price or turnaround time. The professional procurement teams don’t even have to get involved in the entire process. All they need to do is set up the agreement, allowing them to focus on more strategic areas.”
The new framework agreement capability is just one of the many options provided within the Marketplace solution to streamline catalogue and non-catalogue purchasing. Basware also offers “price on request,” for business users to request a quote from one contracted supplier and “quick quote,” for professional buyers to reach out to multiple suppliers – contracted or new.
The benefit of the Basware procurement solution is that it aids user adoption by making it easy for users to procure goods and services, which in turn reduces maverick spend and increases spend under control for organizations.
To learn more about framework agreements, visit our blog.
Basware is the only procure-to-pay and e-invoicing solution provider that empowers businesses with 100% spend visibility through 100% data capture. Our cloud-based technology enables organizations to fully manage their spend, mitigate financial risk and reduce the cost of operations via automation. With the world’s largest open business network and an open technology ecosystem, we are uniquely positioned to deliver the solution required for Visible Commerce, which provides customers with complete transparency into all the flows of money, goods, and services around the world. A global company, Basware has offices in 14 countries and is traded on the Helsinki exchange (BAS1V: HE).