Supply & Stock Agreement
This agreement establishes the basis for Metro Industries,
Inc., of Grandview, Missouri, (“Supplier”) to maintain inventories of
materials and parts necessary to supply parts and products to
___________________ of ___________________
(“Customer”) according to the terms set forth herein.
Only parts and products listed on the “Part List” in
Appendix A are included in this agreement.
3. PART LIST
The Part List (Appendix A) will serve as the primary
reference for the parts and products included in this agreement, pricing, and
criteria Supplier will use for planning purposes to generate stock replenishment
orders. It will include the
4. SUPPLIER OBLIGATIONS
Supplier shall establish and maintain stock levels of raw
materials, work in process, and finished goods sufficient to have on hand,
ready-to-ship products per criteria stated on the Part List.
For stock replenishment purposes, Supplier’s production and inventory
planning will assume peak demands within production lead time unless more
precise forecast data is provided by Customer.
Supplier shall normally ship parts from stock within two or
three working days after ordered or released unless otherwise requested and
Supplier shall report current stock status of items on Part
List to Customer periodically or as requested.
5. CUSTOMER OBLIGATIONS
Customer will issue written Purchase Orders or other written
instrument (Paper, Fax, or Electronic) to order or release parts.
If Blanket Orders are used, releases need not be firmly scheduled in
advance of actual demand.
Customer will advise Supplier of any known changes in
Forecasted Requirements, and relevant changes in Part List will be made
In the event of part obsolescence, removal from Part List, or
otherwise diminished or eliminated requirements, Customer shall purchase or
compensate Supplier for inventories of raw materials, work-in-process, and
finished goods held exclusively with regard to this agreement.
Any such buy-out of Supplier’s inventory will proceed at a rate no less
than the AWU stated on the Part List or equivalent valuation.
This agreement may be amended at any time by written
agreement between Customer and Supplier.
The Part List may be amended or added to at any time by
written agreement between Customer and Supplier. This includes updates to requirement data, pricing, part and
revision numbers, and addition of new items.
Items may be removed from the Part List at any time by either
Customer or Supplier with written 90 day notification.
Unless otherwise agreed, obligations under this agreement will remain in
effect for the 90 day period for both Customer and Supplier, and any subsequent
obligations of Customer regarding inventories held by Supplier will be
administrated according to terms set forth in paragraph 5 above.
Any revisions to the Part List will become effective only
when documented in writing, which will normally be accomplished through
generation of a new Part List showing Effective Date in the header and signed by
both Supplier and Customer. Revisions
to the Part List will automatically supersede any and all previous revisions.
Either party may terminate this agreement without cause with
written 90 day notification, though Customer obligations regarding inventories
held by Supplier will be administrated according to the terms set forth in
paragraph 5 above.
Signed for Customer: _______________________________
Signed for Supplier :
Metro Industries proudly operates under an ISO 9001:2008 Quality System (click to view certificate)
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