In pallet supply, take-or-pay gives the supplier volume certainty so it can buy lumber and staff shifts. Buyers should ask for guaranteed surge capacity in return.
See also
- Request for quotation (RFQ)
- A document inviting suppliers to price a defined product, volume and set of terms.
- Escalator clause
- A contract term that adjusts price in line with a published index.
- Routing guide
- A retailer's or receiver's rulebook for how suppliers must ship to it, including pallet requirements.