Long Term Agreements
We have many long-term procurement contracts in place with Tier 1 manufacturing partners and end users, supplying largely Avago-Broadcom-Foxconn drop-in replacements.
Based on a detailed forecast of client requirements we offer the following:
- Fixed price agreements
- Forward demand ordering, call off orders with the option to revise within agreed timeframes
- Stock rotation
- Finished product reservation held in our warehouse with up to 12 months’ supply
- We commit to BOM component forward purchasing for an agreed period
- LOB (Last order buy) priority
Key principles of our long-term supply agreements
- Continuity of supply
- Logistical requirements of supply
- Continuity in product specifications with controlled BOM management
- Mechanism for changing product specifications in case of technical developments a change in raw materials
- Incoterms
- Fluctuations in purchase prices including price changes related to raw materials or components
- Payment Terms
- Confidentiality Agreements
