The skeleton order system used by PREFAG has been well proven for many years. It is a fair principle of cooperation considering the interests of both partners, customer and supplier, and results in real cost-optimizing for both parties.
How flexible is the PREFAG skeleton order system ?
1. The customer places a skeleton order which is based on the requirement for e.g. 1 year. Thus PREFAG enables the customer to benefit from lower prices based on the corresponding higher quantities and an optimal stock-keeping for both parties. The advantage for PREFAG results from the possibility to define the optimal manufacturing lot quantities according to the very situation which will consequently give the benefit also to the customer by the flexibility achieved.
In order to achieve this benefit, the total order quantity has to be scheduled already on the date of placing the order. PREFAG is entitled to manufacture the total quantity of the said order in one production run.
Such a skeleton order, resp. call-off-order can, of course, be based on a shorter delivery schedule than the above mentioned 12 months.
2. In case of alteration of the customer`s requirements he is entitled
a. to reduce the quantities for the individual partial shipments by 50% maximum, provided a notice of 2 months in advance had been given, i.e. that the remaining delivery period of this order will be doubled. However, the total delivery period of the said order may not exceed more than 50% (18 months max.), calculated as of the first partial shipment initially agreed upon. PREFAG is entitled to deliver the remaining balance of the order after this period.
b. to increase the quantities of the partial shipment after notification of approx. 3 months in advance, which will depend of course on the very capacity and lead time.
Proceeding on the assumption that the requirement will hardly be reduced to less than 50% PREFAG carries the major part of the risk during a declining economic situation. This is only applicable if the customer controls his requirements carefully and reacts in due cause.
How fixed are PREFAG prices ?
1. Prices for skeleton orders are quoted on the PREFAG order confirmation. Unless extraordinary circumstances arise, these are valid as fixed prices for deliveries as of 1st April until the 31st March of the following year.
2. PREFAG is entitled to amend prices for deliveries as of 1st April of the following year based on effective cost increase.
These intervals enable us to base our price alterations on the effective cost changes and to reduce it to a minimum having considered all means of rationalization, of course. The seriosity of our price policy is well appreciated by our customers for many years.
The above mentioned rules have well proven in the past.
PREFAG can preserve the efficiency important for its business partners and offers at the same time a considerable flexibility concerning delivery and a calculable price policy for the customers.
