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Supplier Managed Inventory Agreement
"I need a Supplier Managed Inventory Agreement for my medical supplies company in Australia, where we'll be managing inventory for five major hospitals in Victoria, with specific requirements for temperature-controlled storage and emergency replenishment protocols."
1. Parties: Identifies the supplier and customer, including their legal entity details and addresses
2. Background: Sets out the context of the agreement, including the supplier's inventory management services and the customer's requirements
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles
4. Term and Renewal: Specifies the initial term of the agreement and any renewal options
5. Appointment and Scope: Establishes the supplier's appointment to manage inventory and outlines the scope of services
6. Inventory Management Obligations: Details the supplier's core obligations in managing inventory, including monitoring, restocking, and reporting
7. Customer Obligations: Specifies the customer's responsibilities, including access, cooperation, and information provision
8. Ordering and Delivery Process: Outlines the process for ordering, delivering, and receiving inventory
9. Title and Risk: Establishes when title passes and who bears risk for the inventory at different stages
10. Pricing and Payment: Details the pricing structure, payment terms, and invoicing process
11. Performance Metrics and KPIs: Establishes performance standards and measurement criteria
12. Technology and Systems: Specifies requirements for inventory management systems and technology
13. Confidentiality: Protects confidential information exchanged during the relationship
14. Liability and Indemnities: Allocates risk and establishes liability limitations
15. Termination: Sets out termination rights and processes
16. General Provisions: Standard legal provisions including governing law, notices, and dispute resolution
1. Insurance: Details specific insurance requirements - include if the customer has specific insurance coverage requirements
2. Data Protection: Specific provisions for handling personal or sensitive data - include if dealing with sensitive customer information
3. Disaster Recovery: Business continuity requirements - include for critical supply arrangements
4. Environmental Compliance: Environmental obligations and standards - include for environmentally sensitive goods
5. Quality Assurance: Specific quality control requirements - include for regulated industries or sensitive products
6. Security Requirements: Physical and/or IT security requirements - include for high-value or sensitive inventory
7. Transition Services: Procedures for transitioning services in or out - include for complex or critical supply arrangements
8. Intellectual Property: IP ownership and licensing - include if proprietary systems or processes are involved
1. Schedule 1 - Service Levels: Detailed service level requirements and KPI metrics
2. Schedule 2 - Pricing and Fees: Detailed pricing structure, including any volume-based pricing or handling fees
3. Schedule 3 - Products and Specifications: List of products covered by the agreement and their specifications
4. Schedule 4 - Locations: List of customer locations where inventory will be managed
5. Schedule 5 - Systems and Technology Requirements: Technical specifications for inventory management systems
6. Schedule 6 - Operating Procedures: Detailed procedures for inventory management, ordering, and handling
7. Schedule 7 - Reporting Requirements: Templates and specifications for required reports
8. Appendix A - Form of Purchase Order: Standard form purchase order template
9. Appendix B - Emergency Contact Details: Contact information for key personnel and escalation procedures
Authors
Manufacturing
Retail
Healthcare and Pharmaceuticals
Automotive
Electronics
Industrial Equipment
Fast-Moving Consumer Goods
Aerospace and Defense
Chemical and Materials
Construction and Building Materials
Supply Chain
Procurement
Operations
Legal
Commercial
Logistics
Warehouse Operations
Finance
Information Technology
Quality Assurance
Risk Management
Customer Service
Supply Chain Manager
Procurement Director
Operations Manager
Inventory Control Specialist
Commercial Contract Manager
Logistics Manager
Warehouse Manager
Supply Planning Manager
Category Manager
Business Development Manager
Account Manager
Legal Counsel
Chief Operations Officer
Purchasing Manager
Materials Manager
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