A manufacturing agreement sets the commercial and operating rules under which a supplier produces goods for a buyer. It should connect the legal terms to the specification, quality plan and ordering process.
How Manufacturing Agreement works in a sourcing process
Cover forecasts, orders, materials, pricing, tooling, quality, inspection, change control, delivery, warranties, intellectual property, confidentiality, compliance, continuity and termination.
| Area | What to record |
|---|---|
| Decision | Cover forecasts, orders, materials, pricing, tooling, quality, inspection, change control, delivery, warranties, intellectual property, confidentiality, compliance, continuity and termination. |
| Evidence | Keep the signed agreement, controlled specifications, amendments, approved sites, price schedules, quality records and open disputes together. |
| Watch point | A purchase order alone may not address tooling, process changes or ownership of work product. Those gaps become expensive when the relationship changes. |
What buyers should verify
Keep the signed agreement, controlled specifications, amendments, approved sites, price schedules, quality records and open disputes together.
A purchase order alone may not address tooling, process changes or ownership of work product. Those gaps become expensive when the relationship changes.
