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Subscribe to the channel and click on the bell icon to watch more videos. To create a contract, go to logistics, material management, purchasing, and outline agreements. Vendors negotiate with customers through contracts and scheduling agreements. Contracts are the primary tool, while scheduling agreements are used in specific industries. Focus on contracts by clicking on MA31K to create a contract with vendor 4001. Create a quantity contract with vendor 4001 for delivering 50,000 pounds or kilos of coffee at $9 per pound. Select the right agreement type to proceed.