In some cases, proprietary information is an integral portion of the contract. Different industries will need various clauses. You’ll also need to discuss the terms of this business agreement and create a legal contract stipulating each party’s responsibility. Finding the right manufacturer and supplier is only part of the process. If, for example, your company devises a new design or completely new product for the marketplace. When Do I Need a Manufacturing and Supply Agreement?Ī Manufacturing and Supply Agreement should be used in any business partnership between a manufacturer/supplier and the distributor.

Your business is unique, so the terms and clauses for your agreement should directly reflect your business model and the constraints of your manufacturer and supplier. In essence, the provisions for this contract are essential to the success of an endeavor that hinges on the distribution of a product. For a company producing a product, this agreement provides the structure to determine pricing and profits. The cost of manufacturing will also be itemized, as well as any savings for ordering in larger quantities. This agreement will not only have clauses to ensure the timeline on delivery. These stipulations will also need to be considered when negotiating future distribution contracts. For instance, if your company already has distribution agreements in place that stipulate orders will be filled in a set amount of time, the agreement needs to allow for this provision. When determining the terms of the contract, any current or future distribution contracts should be considered. This agreement outlines all of the terms of this business partnership. In order to sell the product, you might partner with a manufacturer who could produce that product and supply it to your business so that you could distribute the items for sale. For example, your company designed their own product. What is a Manufacturing and Supply Agreement?Ī Manufacturing and Supply Agreement outlines the parameters of a business relationship between a distributor and their manufacturer or the supplier of their products. What Should be Included in a Manufacturing and Supply Agreement?ġ.Why You Need a Manufacturing and Supply Agreement.When Do I Need a Manufacturing and Supply Agreement?.What is a Manufacturing and Supply Agreement?.

Producer agreement template