Procurement terms, also known as procurement conditions, are key contractual terms that are agreed between a company and its suppliers. These conditions include various aspects such as delivery and payment terms as well as the price. The terms of delivery are of particular interest from a logistics perspective, as they regulate transportation and insurance costs as well as the place of transfer of risk.

The terms of delivery determine who is responsible for the organization and costs of transport, whether the supplier delivers the goods to the destination or whether the company organizes the transport itself. In addition, they regulate the time and place of the transfer of risk, i.e. the point at which responsibility for the goods passes from the supplier to the company. This is important as it determines who is liable in the event of damage or loss during transportation.

Common delivery terms include INCO terms such as EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance, Freight) and DAP (Delivered at Place), which define the rights and obligations of the buyer and seller during transportation.

The procurement conditions have a direct influence on the costs, delivery time and risk in the procurement process. A precise definition and negotiation of these conditions is therefore crucial to ensure the efficiency and profitability of procurement.

Careful analysis of procurement terms enables companies to determine the optimal terms for their needs and ensure that the supply chain runs smoothly. Clear communication and agreement of these terms between companies and suppliers is essential to ensure successful procurement.