Framework Agreements

The basic idea underpinning our framework agreement concept is to provide our customers with even better service in terms of:

  • Guaranteed supply and delivery
  • Quality
  • Price

Guaranteed supply and delivery

Borch Textile Group purchases the total contract volume - i.e. the first order from the customer's stock can be guarantied within approx. 6 months after the order is placed. After that, the customer can draw upon his stock as required.
By virtue of the fact that
the customer has 2-3 years supply in stock at Borch Textile Group at any given time, delivery can be guaranteed whenever the need arises.

Quality

In terms of quality, the weight and construction of the products is more consistent as our suppliers have the opportunity to process a greater volume of the same product on their looms.

Price

The 2-3 year framework agreement allows the Borch Textile Group to purchase the total contract volume during the first year, effectively reducing the price in the form of quantity discounts.

As Borch Textile Group purchases the total volume in year 1, the risks posed by cotton-price and US-dollar fluctuations are eliminated.

Prices are fixed for each year of the total agreement so that the customer knows what the price will be 2 or 3 years ahead.