Strategic sourcing and long-term agreements.
Stable pricing comes from suppliers that have agreed to it in writing. We run the strategic sourcing event for each category, negotiate the terms, and put long-term agreements and fixed-frame contracts in place with suppliers that can hold them.
- 6 countrieswith LTAs and inventory stocking agreements established
- 5 categoriesunder fixed-frame contracts with key U.S. suppliers
- $19Mannual supplier spend managed
From our founder’s operating roles. Not client results.
Why strategic sourcing events fail to hold.
Most sourcing events produce a price. Fewer produce an agreement that lasts. Four gaps cause it.
Weak RFQ packages
Drawings, revision levels, specifications, quantities, and quality requirements go out incomplete, so suppliers quote different things and the bids cannot be compared.
Award on unit price
The low bid wins before freight, duties, tooling, first article cost, and supplier risk are counted.
No volume commitment
Suppliers price for uncertainty when they cannot see a forecast. Without committed volume, there is little reason to hold price.
Single-source exposure
Critical parts sit with one supplier and no qualified alternate, so the agreement has no backstop when that supplier misses.
What goes into a strategic sourcing agreement.
Each agreement is sized to the volume you can commit to and written so price, delivery, and quality can be measured from the first release.
- Scope
- Part numbers or part families, revision control, and approved specifications
- Volume
- Annual forecast with a committed quantity and a flexible band above it
- Pricing
- Fixed for the term, or tied to a published raw material index with a set adjustment formula
- Term
- Length matched to the category and your demand plan, with renewal and exit terms
- Stocking
- Supplier-held raw material or finished parts, with release lead time and liability limits
- Delivery
- Quoted lead time and on-time delivery measured against confirmed promise dates
- Quality
- First article inspection and AS9100 or ISO 9001 requirements where they apply
- Flow-downs
- ITAR, FAR/DFARS, cybersecurity, and warranty clauses as your contracts require
- Risk
- Qualified secondary source for single-source components where applicable
How it works.
Category plan
Select the categories, set the price baseline, and define the supplier list and award criteria before any RFQ goes out.
You receive: Sourcing plan for each category
RFQ and bid leveling
Issue complete RFQ packages, answer supplier questions, and level the bids on total cost, capacity, and risk.
You receive: Bid comparison and short list
Negotiate
Negotiate price, volume bands, lead time, stocking, and terms with the short-listed suppliers.
You receive: Negotiated terms and award recommendation
Agreement and launch
Write the long-term agreement or fixed-frame contract, load prices and lead times in your ERP, and start a supplier delivery scorecard.
You receive: Signed agreements and a review cadence
From operating experience.
- LTAs and inventory stocking agreements established with suppliers in China, India, Portugal, Brazil, the UK, and Germany to shorten lead times and secure pricing.
- Fixed-frame contracts with key U.S. suppliers across fabrication, machining, welding, hardware, and seals and gaskets, locking in pricing and lowering on-hand inventory.
- Stable pricing secured through long-term agreements with key suppliers, with secondary sources qualified for single-source components where applicable.
Our founder delivered these results while running supply chain organizations between 2017 and 2026. They are operator results, not client results. See all results
What you receive.
- Category sourcing plans and award criteria
- RFQ packages with drawings, specifications, and quality requirements
- Bid leveling on total cost
- Negotiation plan and term sheet
- Long-term agreements, fixed-frame contracts, and stocking agreements
- Secondary source plan for single-source components
- Agreement language for ITAR and FAR/DFARS flow-downs
Standards, contracts, and systems our founder has worked within
- LTA
- Fixed-frame contract
- Inventory stocking agreement
- Bid leveling
- Total cost of ownership
- AS9100
- ISO 9001
- ITAR
- FAR/DFARS
- Infor LN
Strategic sourcing and LTA questions.
How long should a long-term agreement run?
Long enough for the supplier to plan capacity and material, and short enough that you are not locked in if demand or the market moves. We size the term to your demand plan and the category, with renewal and exit terms written in.
What is the difference between a fixed-frame contract and a long-term agreement?
As we use the terms, a fixed-frame contract sets price and terms for a defined set of parts, with releases as you need them. A long-term agreement runs longer and often adds volume commitments, stocking, and price adjustment rules. The right one depends on how stable your demand is.
Should LTA pricing be fixed or indexed?
Fixed pricing suits parts where raw material is a small share of cost. Where material dominates, such as bar, plate, or castings, pricing tied to a published material index with a set formula is often fairer to both sides and holds up longer.
How many suppliers should be invited to a sourcing event?
Enough to create real competition among suppliers that can actually make the part. That usually means the incumbent plus qualified alternates, not a long list that cannot be evaluated properly.
Do stocking agreements just move inventory to the supplier?
They change when you take ownership. The supplier holds agreed quantities of material or finished parts, and you buy on release. The agreement must state the stock level, the release lead time, and your liability if demand changes.
Start with a 30‑minute conversation.
Describe what you buy and where the problem is. We reply to every message directly.