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Subscribe to our channel and press the bell icon for more videos on creating contracts. Contracts can be created in 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 industry-specific. Focus on contracts in this tutorial and 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 for this transaction.