Letter to Vendor for Contract Renewal

A vendor is a service provider who has a major role to play in the supply-chain mechanism. As a matter of fact, the success of the supply-chain process depends on the vendor also. Some fortunate people find a vendor who is honest and supplies high-quality products. Due to this, they want to renew their contract with him. 

What is an agreement renewal letter?

It is a letter in which a company writes an expression of interest to the service provider to continue working with them in the future. It is important to note that the vendor has a right to decide whether they want to work with the same company or not. 

Companies sign agreements with vendors so that they can supply products to the company regularly. Due to such agreements, the company does not have to find new vendors every time it wants the supply the material. This way, the company, as well as the supplier, is bound to work with each other as long as the contract is in place. Once it expires, they can move on. 

Why write a renewal letter to the vendor?

There are different reasons why a business wants to re-establish the contract with the supplier before it expires. Some common reasons are:

  1. The business is satisfied with the quality and rates of the products the vendor supplies to it 
  2. The business started to search for a new vendor even before the expiry of the agreement and realized that there is no suitable vendor available 
  3. The current supplier has understood the needs of your business and now you don’t want to invest your time in a new person to make him understand the policies of your company. 

What are the best practices to write the renewal of the agreement letter to the vendor?

When you are writing a letter to the supplier to let him know that you are interested in continuing a business relationship with them, make sure that you keep the following points in mind:

Write this letter as soon as possible:

As soon as you make up your mind to continue the business relationship with the supplier, you should write this letter. Sometimes, people who are late come to know that the supplier has signed a contract with another party. Therefore, it is very important to let them know that you are interested in working with them. 

Admire their products and services:

The vendor might want to know what has compelled you to choose to work with them. So, you should let them know that you are happy and satisfied with the services and products they have provided you. This part of the letter is a kind of review a customer or client provides to the vendor. This helps them know how well they are working. 

Discuss how you feel about the contract with the reader:

Let the reader know that you are happy because of the successful business relationship you both enjoyed. Here, you should specify the things that went well. Discuss how your business has achieved its goals due to the supply of high-quality products from the vendor. When you are talking about benefits, make sure that you have considered the perspective of your and the vendor’s business so that it can be seen that you both are working with each other due to mutual interests. 

Provide your contact details:

Never forget to provide your contact details so the supplier can contact you to let you know what they think about the renewal of the agreement with your company. They will also tell you about the changes in the contract that they want you to make before it is renewed. Provide your multiple contact details so you can be sure that the reader will be able to reach you. 

Say thanks to the supplier at the end:

A statement of gratitude is very powerful as it lets people know that you acknowledge them for all the things they have done for you and they feel that they will be able to have an even better experience if they continue to work with the same company. This way, the gratitude makes people acknowledge you back and they are likely to accept your request.

Sample letters


We are delighted to express our pleasure with your services. We would, therefore, like to renew our contract with XYZ for the next 6 months.

Kindly let us know when we can arrange a meeting to discuss our contract renewal. We would like to discuss some changes to the terms and conditions for our renewed partnership.

We look forward to a long business partnership.


I would like to bring to your attention that our business contract is about to expire in May 2033. Our company would like to renew the contract and extend our business partnership.

We have been satisfied with your services throughout the last year. You understand our requirements and demands and we feel comfortable defining our requirements to you. It will, therefore, be a pleasure for us to continue availing your services.

Please let us know about a convenient time when we can arrange a meeting and discuss this further. Your prompt response will be appreciated.

Letter to vendor for contract renewal