Supplier agreements
Set the terms for a continuing supply of products against a specification.
Set the terms of supply with the businesses you buy from.
- Business / Legal document
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Key features
Specification and inspection
Products must match a specification and be free from defects for a period you write in, and the buyer can inspect, test and reject.
Forecasts and orders
A non-binding forecast, then written orders that the supplier accepts or declines within a time you fill in.
Controls on changes
The supplier does not change the specification, materials or place of manufacture without the buyer's written consent.
Shortage allocation
A section for how the supplier shares out short supply among its customers.
Continuity of supply
The supplier keeps stock or capacity for the buyer, gives notice before stopping a product and helps the buyer move to another supplier.
About this document
A supply agreement is for a buyer that depends on a regular supply of products from one source. It covers forecasts, lead times, prices, quality against a specification, what happens to rejected goods, shortages and what the supplier does about continuity.
It is written from the buyer's side. You complete the blanks by hand and both sides sign.
Is this document right for you?
Useful when
- You depend on one source for a component or material
- Quality has to match a written specification
- You want warning before a product is stopped or changed
Commonly used by
- Manufacturers
- Retailers with own-brand lines
- Businesses buying components
Not sure? about your situation first.
Alternatives
These are separate documents, for different jobs.
- Vendor agreementsSet the terms for buying from a vendor.View document
- Sales agreementsSet the terms for selling goods or services.View document
- Distribution agreementsAppoint a distributor and set the terms of distribution.View document
- Reseller agreementsSet the terms for a business reselling your products.View document
When to use this
- A manufacturer commits to a supplier for a key component
- A retailer sources a product made to its specification
- A buyer wants stock held for it during peak periods
What happens next
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More in Sales, Distribution & Commercial
- Sales agreementsSet the terms for selling goods or services.View document
- Distribution agreementsAppoint a distributor and set the terms of distribution.View document
- Agency agreementsAppoint an agent to act or sell on your behalf.View document
- Reseller agreementsSet the terms for a business reselling your products.View document
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Questions
About the supplier agreements
It is written to protect the buyer. A supplier can use it as a starting point but will probably want to change several terms.
Still have a question? .