October 2021

When it comes to procurement and supply chain activities, schedule agreements are an essential part of the process. A schedule agreement is a contract between a buyer and a supplier, which outlines the terms and conditions for future purchases for a certain period. It helps both parties to keep track of the prices, delivery dates, and quantities of goods or services to be supplied.

One of the critical aspects of a schedule agreement is the schedule agreement price. It is the agreed-upon price between the buyer and the supplier for the goods or services mentioned in the contract. The schedule agreement price is usually fixed for the duration of the agreement and is based on factors such as market conditions, volume discounts, and delivery schedules.

It is essential to negotiate the schedule agreement price before finalizing the contract. The buyer must ensure that the price is competitive and fair for both parties. The supplier, on the other hand, must factor in production costs, transportation, and other expenses to arrive at a reasonable price. It is also crucial to consider any possible fluctuations in the market that could affect the price during the contract period.

Another crucial aspect of the schedule agreement price is the payment terms. The buyer and supplier must agree on the payment method, frequency, and due dates. It is common for buyers to negotiate payment terms that provide them with a certain level of flexibility and control over their cash flow.

Moreover, the schedule agreement price must be aligned with the supplier`s performance. If the supplier fails to meet the delivery schedules or the agreed-upon quality levels, the buyer can renegotiate the price or terminate the agreement. It is essential to include such terms in the contract to ensure that both parties are committed to fulfilling their obligations.

In conclusion, the schedule agreement price is a critical component of procurement and supply chain activities. It helps buyers and suppliers to negotiate a fair and competitive price for goods or services, plan for production or delivery schedules, and manage their cash flows. It is vital to negotiate the price before finalizing the contract and ensure that it is aligned with the supplier`s performance. Proper management of schedule agreement prices is key to maintaining long-term relationships between buyers and suppliers.

Vertical agreements are a type of agreement between businesses operating at different levels of the supply chain. These agreements often involve a manufacturer and a distributor, or a supplier and a retailer. In Russia, vertical agreements are regulated by the Federal Antimonopoly Service (FAS) and the Civil Code.

Vertical agreements in Russia are subject to both antitrust and contract law. The FAS is responsible for ensuring that vertical agreements do not violate competition law, while contract law governs the terms and conditions of the agreement itself.

Vertical agreements can take many forms, including exclusive distribution agreements, franchising agreements, and supply agreements. These agreements can be beneficial for both parties, as they provide a clear framework for their business relationship and can help to ensure consistent quality and pricing.

However, there are also potential risks associated with vertical agreements. One of the main concerns is that such agreements can lead to market foreclosure, where smaller competitors are unable to compete effectively. In addition, vertical agreements can sometimes result in higher prices for consumers.

To mitigate these risks, the FAS has established guidelines for vertical agreements in Russia. These guidelines apply to a wide range of industries, including pharmaceuticals, consumer goods, and telecommunications.

Under the guidelines, vertical agreements are generally permissible as long as they do not result in market foreclosure or harm competition. Specifically, the FAS looks at factors such as market power, the size of the parties involved, and the terms of the agreement itself.

In addition to the FAS guidelines, there are also specific rules governing certain types of vertical agreements. For example, franchising agreements are subject to specific requirements under Russian law, such as a requirement to register the franchise agreement with the FAS.

Overall, vertical agreements are an important aspect of business in Russia, but they must be carefully structured to ensure compliance with antitrust and contract law. Businesses operating in Russia should be aware of the regulatory framework governing vertical agreements and work with legal experts to ensure that their agreements are in compliance with the law.