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Glossary

What is a panel arrangement?

A panel arrangement is a group of suppliers selected in advance to provide defined goods or services, so buyers can order from them under agreed terms.

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How a panel arrangement works

The buyer runs one sourcing process to select several suppliers able to provide a defined set of goods or services. Selected suppliers join the panel under a standing agreement that sets terms, rates and service standards. When a need arises, the buyer orders directly from a panel supplier, or runs a short mini competition among them, without starting a new full tender.

Why organizations use panels

  • Faster buying, because suppliers are already vetted and contracted.
  • Consistent terms and pricing across the organization.
  • Competition kept alive among a known group of suppliers.
  • Less effort for both buyers and suppliers on repeat needs.

Where panels are common

Panels are widely used in the public sector and in large companies for professional services, IT contractors, legal services, marketing and facilities work, anywhere the same kind of need recurs but each piece of work differs.

How Aavenir handles it

RFPflow runs the sourcing event that selects panel suppliers and any later mini competitions. Contractflow holds the panel agreement and each call off, with dates and terms tracked.

Keep reading

Request for tender A request for tender is a formal invitation to suppliers to submit sealed, structured bids for defined work.Read more Blanket purchase order A blanket purchase order covers repeated purchases from one supplier over a period, at agreed prices and terms.Read more Solicitation A solicitation is a buyer's formal request for suppliers to submit information, quotes, proposals or bids.Read more

Frequently asked questions (FAQ)

Common questions

What is the difference between a panel arrangement and a preferred supplier list?

A panel is formed through a competitive process and backed by a standing agreement with set terms. A preferred supplier list may be less formal, guiding buyers toward suppliers without a binding framework behind it. Read about approved suppliers.

How long does a panel arrangement last?

Usually a fixed term of a few years, sometimes with options to extend. When it ends, the buyer runs a new sourcing process so new suppliers can compete for a place. Read about request for tender.

Can a buyer go outside the panel?

Normally only with approval and a documented reason, such as no panel supplier being able to meet the need. Regular buying outside the panel undermines its terms and is a form of maverick spend. Read about maverick spending.

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See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

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