Fulfillment
Open-Book Contract
A contract where cost structures and financial details are transparent between buyer and supplier.
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Updated 2025-10-01
Definition
Open-book contracts encourage collaboration, efficiency, and cost optimization by sharing actual costs and profit margins openly.
Overview
Overview
Open-book contracts improve trust and allow both parties to jointly manage expenses, adjust forecasts, and share cost savings.
Benefits
- Transparency in pricing
- Collaborative planning
- Shared cost reduction
Example
A retailer and logistics provider agree on an open-book contract to review freight costs monthly and optimize shipping expenses.
Tags
#Open-Book Contract#Supplier#Cost Management#Fulfillment#Collaboration
Related Terms
Service-Level Agreement (SLA)
Freight Rate Management
Vendor Scorecard
