Preferred Supplier Agreement Template Nz
As a business owner, finding a reliable supplier is essential to the success of your company. One way to ensure that you have a consistent and trustworthy relationship with your suppliers is through a preferred supplier agreement (PSA).
A PSA is a contract between a company and a supplier, outlining the terms and conditions of their business relationship. This document establishes a framework for collaboration between the two parties, guaranteeing that both sides are aware of their roles and responsibilities.
While there is no legal requirement for a PSA in New Zealand, creating one is an excellent way to manage risk and set expectations from the outset of your supplier relationship. The PSA should outline the following:
1. Scope of Services
Outline exactly what services and products your supplier will provide, including any delivery and/or production timelines.
2. Pricing and Payment Terms
The pricing and payment terms should be clearly defined in the PSA, including any discounts or rebates that may be offered based on volume or other factors.
3. Quality and Performance Standards
Define the quality and performance standards that your supplier must meet, including deadlines, quality control, and any quality assurance measures.
4. Confidentiality and Intellectual Property
Ensure that all confidential information and intellectual property is protected and that the PSA includes a non-disclosure agreement (NDA) to safeguard any sensitive information.
5. Termination Criteria
Define the grounds for termination of the PSA, including breach of contract, failure to deliver products or services, or other factors.
By creating a PSA, you will have a clear and agreed-upon framework for your supplier relationship. Both parties will know what to expect, and this can help to minimize misunderstandings and conflicts in the future.
When drafting your PSA, it is essential to seek legal advice to ensure that it complies with New Zealand laws and regulations. There are many online templates available that you can use as a starting point. Still, it is always best to consult with a legal expert who can provide you with customized advice tailored to your specific business needs.
In conclusion, a preferred supplier agreement is a powerful tool that can help establish and maintain strong partnerships between businesses and suppliers. By outlining the scope of services, pricing and payment terms, quality standards, confidentiality and termination criteria, both parties can work toward a common goal of sustainable business growth.
