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A Comparison of Blanket and Systems Contracts
Author(s) -
Noordewier Thomas G.
Publication year - 1989
Publication title -
journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 0094-8594
DOI - 10.1111/j.1745-493x.1989.tb00480.x
Subject(s) - blanket , business , salient , industrial organization , computer science , materials science , artificial intelligence , composite material
Blanket and systems contracts are commonly used to procure repetitively needed materials and supplies. The author reports the results of a study in which the structural and performance features of these contractual devices are empirically examined. As expected, blanket and systems buying arrangements differ structurally with respect to a number of salient contract characteristics. Additionally, firms using systems contracts exhibit higher turnover rates than do firms using blanket contracts. Some implications of these findings for buyers are discussed.