In brief
A call-off order is an order used to draw partial quantities from an existing framework agreement on the terms agreed there.
Contents
What is Call-off order?
A call-off order requires a framework agreement in which prices, terms and usually a total quantity or total value have already been set. With each call-off, the buyer only specifies the quantity, date and delivery address. Negotiation and supplier selection are no longer needed for each individual transaction.
The basis is either a quantity contract, which sets a total quantity of an item, or a value contract, which provides for a total amount across several items. In ERP systems, the call-off is usually created as a release order referencing the contract, so that consumed and open quantities are visible at all times. Some agreements provide for fixed call-off dates or delivery schedules, others allow free call-offs within the term.
The benefit lies above all in lower process costs: individual orders become simpler and faster and can in part be delegated to requesters. At the same time, the pooled volume of the framework agreement is retained. It is important to keep an eye on minimum purchase quantities, the end of the term and rules for quantities not called off, so that no unplanned obligations arise at the end of the term.
In practice: maintenance and procurement
In maintenance, call-off orders are suitable for regularly required wear parts and C-parts such as filters, seals or bearings. Regularly checking the call-off status shows early on whether the contract will run out prematurely or whether residual quantities are likely.
Synonyms and abbreviations: release order · call-off · scheduled release · blanket order release · delivery call-off
Frequently asked questions
What is the difference between a framework agreement and a call-off order?
The framework agreement sets prices, terms and often a total quantity or total value for a period, but does not itself trigger a delivery. Only the call-off order specifies a partial quantity with a date and delivery address and turns it into an order that must be delivered.
What is a quantity contract and what is a value contract?
In a quantity contract, a total quantity is agreed for a specific item and called off over the term. In a value contract, a total amount applies that can be used for several items or a category. Value contracts are more flexible when the exact items are difficult to determine in advance.
What are the advantages of call-off orders for procurement?
Call-off orders reduce the effort per order because negotiation and supplier selection have already been completed. Orders are faster, can be partly automated or delegated to specialist departments, and the pooled terms of the framework agreement are retained. Consumption per contract also becomes transparent.
What happens to quantities not called off at the end of the agreement?
That depends on the contractual arrangement. Some framework agreements include a purchase obligation, so that residual quantities must be paid for or taken; others only secure terms without any obligation. Purchase obligations, tolerances and extension options should therefore be agreed explicitly and the call-off status checked regularly.