Below are a few key terms that may be clarified in such agreements.
Product and Pricing. Naturally, the agreement should include precise descriptions of the product, packaging and pricing, including design, specifications, materials, components, logos, and so forth. Such items are best described in addendums to the agreement, so they may be easily modified as needed. The agreement may also describe the process for making any price adjustments.
Quality and Inspections. The agreement should specify all governmental, environmental, industry, compatibility and customer quality requirements to be complied with, as well as required testing and certifications. It may permit quality audits by the customer (the customer may outsource that task if needed) and should clearly describe inspection rights and remedies for non-conforming products.
Forecasts and Volume. The manufacturer will want binding, rolling forecasts and a guaranteed minimum purchasing volume. The customer will typically provide only non-binding forecasts and will refuse to commit to a particular volume. Various compromises are possible.
Orders & Delivery. The agreement should describe placement and acceptance of orders, minimum order quantity, delivery terms, and respective rights and remedies concerning cancelation, modification or re-scheduling delivery of orders, all prime areas for potential disputes.
Intellectual Property. The agreement may state that each party’s Background IP shall remain its Starting A Business For Dummies own property and may place restrictions on use of the customer’s trademarks and trade names.
Warranties and Indemnification. Usually, the manufacturer will be required to warrant that the goods comply with the specifications and are free from defects, and to provide spare parts and service for a certain period. The manufacturer will also, typically, agree to indemnify the customer in the event any goods are accused of intellectual property infringement. Such provisions are critical, but both parties have substantial room for negotiating the exact terms and any exceptions.
Term and Termination. The agreement should allow for termination immediately in the event of bankruptcy, or after a certain notice period in the event of default. The challenge is allowing for termination at will, while providing the other party with reasonable protection against resulting damages. In particular, the manufacturer may demand compensation for long lead-time parts or un-purchased inventory that fell within the customer’s forecasts.
Dispute Resolution. As with all contracts, the agreement should specify jurisdiction, venue, governing law and possibly alternative dispute resolution procedures in the event of a dispute.
The above list is not comprehensive, but just a sampling of important issues that may be nailed down in a manufacturing agreement, to simplify the resolution of future disputes. Different Types Of Manufacturing Strategies Once the business people reach agreement on the key points, they should call in Legal to ensure that all is stated clearly in an agreement and nothing is missed.
Finally, as the business team will be eager to move forward with the manufacturing, Legal should follow up to ensure that both parties sign the agreement and it is filed in a secure location.…
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Mums – Find Out How to Start Your Own Small Home Business!
We all love the idea of staying at home and being as involved with our children in their formative years as possible. Unfortunately, circumstances don’t always allow us to do so, as financial constraints often pressure us into returning to the work-force.
Are you trying to find ways to help pay the bills each month but are loathe to place your children in child-care? The answer is a home-based business where you are always available for your kids and will work the hours that suit your family.
The internet has had a huge impact on our lives and continues to grow, influencing how we shop, communicate and ‘do’ business. Our children are receiving computer tuition at kindergarten and are completely computer literate in primary school! It’s truly amazing and demonstrates how the internet has become a basic and necessary daily part of our professional and social lives.
Home-based businesses are a part of this phenomenon, and the hottest current trend. In fact statistics show that in coming years, 1 in 3 households will be generating Manufacturing Strategy Wiki their primary source of in come from the home. Staggering figures when you think how we have been predominantly working from venues away from the home-base.
An element of the home-based business explosion is on-line marketing. With the huge growth and demand for internet shopping, the marketing side of this shopping has experienced mammoth interest and is an enormous part of the work from home industry.
Apart from the obvious advantage of not needing child-care whilst working in your own home-based business, there are numerous other fantastic benefits.
*You have the ability to work the hours that suit yours and your family’s life-style. No longer are you locked into a 9-5 job, or a roster that only benefits your employer.
*Time freedom. You have so much more time for yourself and your family leaving you free to pursue those interests/hobbies you have.
*Extremely lucrative income opportunities enabling you to enjoy and live the life-style you have always hoped for, including that family holiday you have been promising yourself!
*Being your own boss in your own business. A business that does not have all the expensive start-up and on-going costs associated with a conventional franchise/business.
*Having the luxury of working from your own home.
You may be wondering if you need to be computer savvy in order to set up your own venture. The answer is a firm No. You will be trained in every aspect of the business and this training and mentorship is ongoing, so you never have to worry if you don’t understand something. Help is only a phone-call away should you need.
One more thing – it’s important. Your business continues working for you around the while you sleep. This Is Industrial Engineering Hard Reddit is because the internet never closes. It operates 24 hours, 7 days a week and so will your enterprise.
As Mums, we all want the best for our children. How much better could it …