Sample Manufacturing Contract?

Hi,

I am planning to get a product manufactured.
Does anyone have any sample contracts that I should have in place with a manufacturer? I guess a NDA to start and then the real contract between me and the contract factory.

Things like saying they can’t make it and sell it, how to handle returns and replacements if the items aren’t to spec. How to ensure they adhere to quality standards…who owns the molds, etc. Just looking for a contract or form I should have them sign that avoid potential pitfalls.

Thanks for your help!

Anyone?

There is far to much to go over to really do this topic justice.

One rule of thumb…in particular with tooling (plastic) is you get what you pay for. Pay a few grand more and go with a reputable vendor. Local if you’re a small guy without infinitely deep pockets.

PM me if you have specific questions.

Where are you located?

just googled “supplier agreement” and found this. may be of use. seems to cover lots to at least give you an idea of what may be included.

a typical supplier agreement is normally a pretty hefty document. i’d suggest for something as important as this to consult a legal professional. a supplier is the lifeline for your business, so i would be very careful with choosing one, and ensuring the terms and conditions are well worded and agreeable to all parties.

R

I am in the USA and thinking about making a small plastic widget in China.

Which link are you referring to from your Google search?

oops, sorry. herers the link

http://www.americanstandard.com/suppliers/SupplierTermsAndConditions.pdf

R

[quote=“ip_wirelessly”]There is far to much to go over to really do this topic justice.

One rule of thumb…in particular with tooling (plastic) is you get what you pay for. Pay a few grand more and go with a reputable vendor. Local if you’re a small guy without infinitely deep pockets.

PM me if you have specific questions.

Where are you located?[/quote]

That would be expensive if you manufactuered here in the states or anywhere other than asia. That is double the cost on whatever you make in most cases. I found doing things here in the states kind of dfficult. What are the benefits; not having to import?

mpdesigner,

If you are going to China, I must voice something obvious.

“Things like saying they can’t make it and sell it, how to handle returns and replacements if the items aren’t to spec. How to ensure they adhere to quality standards…who owns the molds, etc.”

If you think a contract signed by a China supplier will protect you on these items you have a LOT to learn about China. Sorry to be so blunt.

China is about getting something cheap and you get what you pay for. If you want protection find a manufacturer somewhere else.

In China you have to spend a long time building up relationships with a manufacturer and then you might get some of the things you want. This is the culture.

The best you can do is agree that your country is off limits for the manufacturer and they can make knock offs for other markets as long as they give you a small, small percentage. Of course the less of a relationship you have then the less chance this will work.

If you’re having this made in China I have one word for you:

“Specs”.

Send plenty of them. If you get into a pissing battle about ANYTHING you can refer back to the spec package you sent with your development package (and purcahse order / LC / wire transfer).

Send:

  • Drawings
  • Photos
  • Quality expectations (key inspection details)
  • Schedule (key dates)
  • Packaging details

Also:

  • Expect the unexpected. Your first project will be a nightmare.
  • Select a vendor that has been referred to you. Don’t just open the Shenzhen Yellow Pages.
  • Get an English speaking “agent” that can look out for your interests in China. There are plenty of trading companies that can help you. Get a good one.

I’ve seen very few “manufacturing agreements” in China. Most business is done with a set of specs and a handshake. They hate lawyers.

Hope this helps.

That’s absolutely false. If you are simply looking at the NRE aspect of the process, you are correct. Getting product manufactured in Asia makes absolute sense for the medium to large company that has the resources to handle the logistics of manufacturing overseas.

I have no idea how much experience mpdesigner has in this kind of endeavor. I am assuming little to none if he/she is asking this question. To manufacture overseas you have to account for time difference, shipping (overnight for 1st article?), flights to Asia if this is anything more than a 50K unit run, language barriers, etc. etc… Getting the tool made in China and then shipped to N/A is a possibility. Most tool shops have some kind of connection like that (at least in Vancouver they do). But all in all, doing this with no experience is risky at best. You are far better off spending the extra few grand to do it in your back yard. And it is only a few grand if you do it right.

Asia is not the holy grail of manufacturing. It comes with a LOT of hidden speed bumps. If all you do is look at the cost of the tool you are overlooking a huge amount of the process.

Great advice…especially the specs part. Everything listed under “Also:” equates to money. Hiring agents, etc. Again, a small tooling and molding shop locally could conceivably do this for you. You get it done here, have control over it, sell 50K units then move your tool to Asia once you’ve made some cash…if that makes sense (as long as you own the tool).

IP-

I’m not disagreeing with you, however it could be hard to find a manufacturer here in the states that will do everything your item entails.
You probably have to source other places for thing such as springs, metal parts and other parts, ship it to them and they would assemble it for you. I know of some that only deals with just molding. In China, I have found them to handle it all. They source it for you.

Agreed. Looking at this from the perspective of someone who has experience doing this stuff, or as a company that has the financial resources to handle overseas manufacturing, it makes sense.

I am taking this from the perspective that mpdesigner has no experience with this. Hearing everyone say how great it is to get stuff done in Asia. Asia manufacturing is great IF you know what you’re doing and what pitfalls to overcome.

If you don’t know that stuff, then staying local will more likely than not save you in the long run.

There is more to the Americas than the US. “Go South, my son”

There is some really great advice and obvious historical knowledge from these postings.

If the US dollar wasn’t in freefall, I would have told you to come north. 5 years ago it was VERY cost effient to come to Canada for this stuff. There is also a very good asian network here.

I am curious to see what the US dollar coming on par with the Canadian dollar is going to do.

[quote=“ip_wirelessly”][quote=“YAYO all dayo”]IP-

I’m not disagreeing with you, however it could be hard to find a manufacturer here in the states that will do everything your item entails.
You probably have to source other places for thing such as springs, metal parts and other parts, ship it to them and they would assemble it for you. I know of some that only deals with just molding. In China, I have found them to handle it all. They source it for you.[/quote]

Agreed. Looking at this from the perspective of someone who has experience doing this stuff, or as a company that has the financial resources to handle overseas manufacturing, it makes sense.

I am taking this from the perspective that mpdesigner has no experience with this. Hearing everyone say how great it is to get stuff done in Asia. Asia manufacturing is great IF you know what you’re doing and what pitfalls to overcome.

If you don’t know that stuff, then staying local will more likely than not save you in the long run.[/quote]




Im not sure if financial resources has that much to do with managing something overseas. If you have the right information, now who to work with, find help or fullfillment agency to ship it to your door step. I think it is possible to work overseas on a budget of let say 50-100K short-run project to gamble with.

My guess…mpdesigner is choking on his doughnut right now (sorry mpdesigner if you are more experienced with this than I am giving you credit for).

You’re re-emphasizing my point. As a consultant you get this quesion all the time. How to manufacture a product. Telling someone that it is even a $10K investment…JUST FOR TOOLING…and you are having to pull out the paper bag because they are hyperventilating.

$50K - $100K is not a lot of money in the business sense. But that is coming from the angle of knowing what to expect. Besides…if it is a “plastic widget” like mpdesigner is talking about…$50 - $100K is far too high a number to have to pay for the manufacturing aspect (complexity depending).

That’s not including warehousing, assembly (if there is any), fulfillment, shipping, sales, marketing, christmas parties…

Is hell freezing over or did I just see Deez provide useful information without calling someone names?

That’s more like it.

well i dunno how useful it is.