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Subscribe to our channel and press the bell icon for more videos. To create a contract, go to logistics, material management, purchasing, and outline agreements. Vendors use contracts and scheduling agreements to negotiate with customers. Contracts are the primary tool, while scheduling agreements are specific to certain industries. Focus on contracts in this chapter. Create a contract with vendor 4001 for a quantity contract, delivering 50,000 pounds of coffee at $9 per pound. Select the right agreement type to proceed.