Contracts and service contracts are essential commercial instruments for commercial and professional commercial relations. In the absence of clearly defined and agreed contracts, misunderstandings may arise, the expectations of the customer and the supplier (customer and supplier) may not match and all kinds of problems may arise. Strategic purchasing involves using the university`s total expenses with fewer suppliers to go through the process of concluding the contract as a university, instead of each department and the school having to go through the process itself. The ultimate goal is to save departments and schools money, time and resources. While the price of an item offered by a retailer may be lower in dollars, buying the item usually does not offer the lowest total cost or the best value for the university. .