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Supply Chain Agreement template
Supply Chain Agreement sample


What is Supply Chain Agreement?

Supply Chain Agreement Governs relationships within a supply chain, including procurement, logistics, and performance metrics.



Sample template:



SUPPLY CHAIN AGREEMENT

This Supply Chain Agreement (the "Agreement") is entered into as of [Date], by and between EcoTech Manufacturing Inc., a [State] corporation ("EcoTech"), and Reliable Electronics Solutions, a [State] corporation ("Reliable"), collectively referred to as the "Parties."



1. SCOPE OF AGREEMENT

1.1. Purpose


This Agreement sets forth the terms and conditions under which EcoTech shall supply Eco Power X1 Microchips (the "Products") to Reliable, and Reliable's obligations with respect to purchase, quality inspection, and acceptance of the Products, as well as the responsibilities of the Parties concerning delivery schedules and dispute resolution.



2. PROCUREMENT AND PURCHASE ORDERS

2.1. Purchase Orders


Reliable shall submit written purchase orders to EcoTech for the Products, specifying the order quantity, delivery date, and shipping address. EcoTech's acceptance of any purchase order shall be communicated to Reliable in writing, at which time a binding contract shall be formed, subject to the terms and conditions of this Agreement.



2.2. Forecasting


Reliable shall provide EcoTech with a rolling twelve (12) month non-binding forecast of its anticipated requirements for the Products, which shall be updated on a monthly basis. EcoTech shall use reasonable efforts to meet Reliable's purchase order requirements for the forecasted quantities.



3. QUALITY STANDARDS AND INSPECTION

3.1. Compliance with Specifications


EcoTech shall manufacture and supply the Products in accordance with the agreed-upon specifications, and all applicable laws, regulations, and industry standards in the United States. Reliable shall have the right to inspect the Products upon receipt, and to reject any Products that do not conform to the agreed-upon specifications.



3.2. Inspection and Acceptance


Reliable shall have seven (7) business days from the date of receipt of the Products to inspect and either accept or reject the Products. If Reliable does not provide notice of rejection within this time period, the Products shall be deemed accepted. In the event Reliable rejects any Products, it shall provide EcoTech with a written notice specifying the nature of the defect, and the Parties shall cooperate in good faith to resolve the issue.



4. DELIVERY, TITLE, AND RISK OF LOSS

4.1. Delivery Terms


Deliveries of the Products shall be made according to the delivery dates specified in accepted purchase orders. EcoTech shall be responsible for the packaging, shipping, and transportation of the Products, and shall deliver the Products to the shipping address specified in the purchase order.



4.2. Title and Risk of Loss


Title and risk of loss for the Products shall pass to Reliable upon delivery of the Products at the specified shipping address. EcoTech shall obtain, at its expense, appropriate insurance covering the value of the Products during transportation to the shipping address.



5. PRICE AND PAYMENT TERMS

5.1. Price


The price for the Products shall be agreed upon between the Parties and specified in the accepted purchase order. All prices are stated in United States Dollars and exclude taxes, custom duties, and other government charges, which shall be the responsibility of Reliable.



5.2. Payment Terms


Reliable shall pay the invoiced amount for the Products within sixty (60) days from the date of invoice, unless otherwise agreed by the Parties in writing. Payment shall be made by electronic funds transfer to the account designated by EcoTech. Late payments shall be subject to interest at the rate of 1.5% per month or the highest rate permitted by law, whichever is lower.



6. CONFIDENTIALITY

6.1. Confidential Information


Both Parties agree to keep all information associated with this Agreement, including but not limited to pricing, product specifications, and proprietary technologies, confidential and shall not disclose such information to any third party, other than to employees, agents, or consultants on a need-to-know basis, without the prior written consent of the other Party. This obligation shall survive termination or expiration of this Agreement for a period of three (3) years.



7. DISPUTE RESOLUTION

7.1. Governing Law


This Agreement shall be governed by and construed in accordance with the laws of the United States and the state in which each Party is incorporated, without reference to their respective conflict of laws principles.



7.2. Arbitration


Any dispute, controversy, or claim arising out of or in connection with this Agreement, or the breach, termination, or invalidity thereof, shall be finally settled by binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall take place in a location mutually agreed upon by the Parties, and English shall be the language of the arbitration. The arbitral award shall be final and binding on both Parties.



8. TERM AND TERMINATION

8.1. Term


This Agreement shall have an initial term of two (2) years, commencing on the Effective Date. Thereafter, the Agreement shall automatically renew for successive one (1) year terms unless either Party provides written notice of its intention not to renew at least sixty (60) days before the end of the then-current term.



8.2. Termination for Cause


Either Party may terminate this Agreement upon written notice if the other Party breaches any material term or condition of this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice thereof from the non-breaching Party.



9. MISCELLANEOUS

9.1. Entire Agreement


This Agreement, together with any accepted purchase orders and any exhibits, schedules, or attachments hereto, constitutes the entire understanding and agreement between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements or understandings, whether oral or written, with respect thereto.



9.2. Amendments


No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties.



9.3. Counterparts


This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute the same instrument.



IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.



EcoTech Manufacturing Inc.


By: ________________________


Name: ________________________


Title: ________________________



Reliable Electronics Solutions


By: ________________________


Name: ________________________


Title: ________________________

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Common Sections of a Supply Chain Agreement


In this Supply Chain Agreement, you will see the following sections:

  1. Scope of Agreement
  2. Procurement and Purchase Orders
  3. Quality Standards and Inspection
  4. Delivery, Title, and Risk of Loss
  5. Price and Payment Terms
  6. Confidentiality
  7. Dispute Resolution
  8. Term and Termination
  9. Miscellaneous


Analysis/Summary of each section

  1. Scope of Agreement : This section outlines the purpose of the agreement, which is to establish the terms and conditions for EcoTech to supply microchips to Reliable. It also covers the responsibilities of both parties regarding purchase, quality inspection, delivery schedules, and dispute resolution.

  2. Procurement and Purchase Orders : This section explains how Reliable will submit purchase orders to EcoTech, specifying the order quantity, delivery date, and shipping address. It also covers the forecasting process, where Reliable provides a 12-month non-binding forecast of its anticipated requirements for the products.

  3. Quality Standards and Inspection : This section states that EcoTech must manufacture and supply the products according to agreed-upon specifications and applicable laws, regulations, and industry standards. Reliable has the right to inspect the products upon receipt and reject any that do not conform to the specifications. The inspection and acceptance process is also outlined.

  4. Delivery, Title, and Risk of Loss : This section covers the delivery terms, stating that EcoTech is responsible for packaging, shipping, and transportation of the products. Title and risk of loss for the products pass to Reliable upon delivery at the specified shipping address. EcoTech must obtain insurance covering the value of the products during transportation.

  5. Price and Payment Terms : This section outlines the pricing for the products, which will be agreed upon between the parties and specified in the accepted purchase order. It also covers payment terms, stating that Reliable must pay the invoiced amount within 60 days from the date of the invoice, with late payments subject to interest.

  6. Confidentiality : This section requires both parties to keep all information associated with the agreement confidential and not disclose it to any third party without prior written consent. This obligation lasts for three years after the termination or expiration of the agreement.

  7. Dispute Resolution : This section states that the agreement is governed by the laws of the United States and the state in which each party is incorporated. Any disputes arising from the agreement will be settled by binding arbitration in accordance with the rules of the American Arbitration Association.

  8. Term and Termination : This section outlines the initial term of the agreement, which is two years, and the automatic renewal process. It also covers the termination process, allowing either party to terminate the agreement if the other party breaches any material term or condition and fails to cure the breach within 30 days after receiving written notice.

  9. Miscellaneous : This section covers various miscellaneous provisions, such as the entire agreement clause, amendment process, and the execution of the agreement in counterparts. It emphasizes that the agreement, along with any accepted purchase orders and attachments, constitutes the entire understanding between the parties and supersedes any prior agreements or understandings.

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