In Tradogram, the Contracts module is designed to manage long-term agreements and recurring purchasing needs. While a Purchase Order (PO) is typically for a one-time transaction, a contract serves as the "umbrella" agreement that governs multiple purchases over an extended period.

Key Uses for Contracts

Tracking Recurring Purchases

Contracts are ideal for services or products that you buy on a regular schedule (e.g., monthly cleaning services, quarterly hardware refreshes, or raw material supplies). By setting up a contract, you define the agreed-upon pricing and terms for the entire duration of the agreement.

Managing "Blanket" Agreements

You can use a contract to track a large commitment to a supplier. Over time, you can create multiple Purchase Orders that are directly linked to that contract. This allows the system to:

• Track Utilization: See how much of the total contracted value has been "used" via issued POs.
• Maintain Pricing: Ensure that every order placed against the contract uses the pre-negotiated rates.

Standalone Document Tracking

Even if you don't create individual POs against it, a contract can serve as a standalone digital record. You can store the signed legal document, track the start and end dates, and set up notifications to alert you before the contract expires.

Post-Negotiation Awarding

A contract is often the final step of a sourcing event. After completing a Request (RFQ/RFP) negotiation process, you can "award" the business by converting the winning bid directly into a contract. This seamlessly moves your negotiated terms into an active purchasing agreement.

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