How One Buyer Used Multi-Year Agreements to Cut Costs 16 Percent

The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions · Jul 16, 2026 · 7m · transcript

In this episode of The Buyer's Side, Lucas and Luna explore how a mid-sized manufacturer used multi-year agreements with key suppliers to achieve a 16 percent cost reduction. They break down the specific terms of the deal—a three-year contract with annual price escalation capped at 2 percent, volume commitments, and quarterly business reviews. The hosts discuss the risks, including locking in with a supplier who might become complacent, and how the buyer structured exit clauses and performance milestones. Lucas explains the concept of 'contractual creep' and how the buyer…