Material Procurement. A. Customer’s accepted purchase orders will constitute authorization for Supplier to procure, using standard purchasing practices, the labor, components, materials and supplies necessary for the manufacture of Products (“Inventory”) covered by such purchase orders.
B. Only with the prior approval of Customer may Supplier purchase any Inventory in excess of the Inventory required to manufacture the Products covered by Customer’s three-month purchase order. Therefore, Customer and Supplier may agree, in writing, that Supplier may purchase components, materials, and supplies: (i) with lead times exceeding the period covered by the accepted purchase orders for the Products to the extent necessary for the manufacture of additional Products covered by Customer’s Quantity Requirements (“Long Lead Time Components”) and, (ii) in quantities above the required amount for purchase orders to achieve price targets (“Economic Order Inventory”), and (iii) in excess of requirements for purchase orders because of minimum lot sizes available from manufacturers (“Minimum Order Inventory”). Together these are called “Special Inventory”.
C. In addition, and upon Customer’s written request, Supplier may from time to time hold Long Lead Time Components and finished Products in inventory to increase Customer’s sourcing flexibility. The components and quantities of all such inventory and the associated cost will be documented in a separate letter agreement and signed by both Supplier and Customer.
D. Provided that all terms and conditions of paragraph 2.4 are met, if Customer fails to purchase all of the Products specified in any purchase order that conform to the warranty set forth in paragraph 4.3, the Customer agrees to reimburse the Supplier for all Inventory and Special Inventory purchased by Supplier in reliance on a Customer’s Purchase Order that cannot be used by Supplier to manufacture the Products because of Customer’s failure to so purchase such Products (a “Reimbursement Amount”). Supplier agrees to maintain a sufficient inventory at its location to ensure meeting the agreed-upon delivery schedule. If Supplier agrees to ship on a weekly or monthly basis, Supplier agrees to maintain a minimum one-month inventory of raw materials and/or components at its location to ensure meeting the weekly or monthly delivery schedule.
Material Procurement. The Trade Contractor will order and procure materials as required to maintain the Project schedule. If alternate materials are requested by the Authority or Team, Trade Contractor will advise of any alleged time impacts.
Material Procurement. 4.1 FQS is authorized to purchase materials using standard purchasing practices including, but not limited to, acquisition of material recognizing Economic Order Quantities, Envivio buy policy and long lead time component management in order to meet the forecasted requirements of Customer if FQS feels it is necessary to meet the delivery lead time commitment to Customer. FQS shall purchase parts from only vendors on the Customer’s approved vendor list. Customer will provide an approved vendor list including Customer product number, manufacturer product number, description, sources, and price. Customer recognizes its financial responsibility for the custom material purchased by FQS on behalf of Customer. Customer is responsible for material to the extent that (i) material was purchased by FQS to support the Product forecast and agreed upon safety stock (yet to be agreed); (ii) FQS exercised reasonable business judgment in managing suppliers and lead times; (iii) FQS complied with Customer cancellation instructions in a timely manner (canceled all open orders within one (1) week of receiving instructions); and (iv) such materials cannot be used by FQS for other customers and at other sites of FQS.
4.2 Customer may revise or cancel a purchase order for Product and may also eliminate a component from a Product. If Customer revises or cancels a purchase order (“Order”), or eliminates a component causes excess inventory, FQS shall identify all potential liability of Customer for material on order, material on hand, work in process, and finished goods. FQS shall undertake commercially reasonable efforts to cancel all applicable component purchase orders and reduce component inventory through return for credit programs or allocate components for alternate programs to minimize charges to Customer. Customer agrees to compensate FQS for costs incurred for finished goods (including profit); work in process (including labor performed); material on hand which could not be returned or used for other customers and at other sites of FQS; material on order which could not be canceled; applicable material supplier’s restocking or cancellation fees; and agreed FQS handling charges.
4.3 FQS will report its inventory position to Customer on a bi-weekly basis and at month’s end within three (3) business days, including the following data: quantity of raw material, work in process and any open orders that cannot be canceled due to supplier lead time. Report will specifically iden...
Material Procurement. The material procurement undertaking, pursuant to this Agreement, will be carried-out by the Contractor.
6.1 Contractor is authorized to purchase materials using standard purchasing practices including, but not limited to acquisition of materials recognizing Economic Order Quantity, ABC buy policy and long lead time components management, in order to meet the requirements of Customer’s orders and forecasts.
Material Procurement. Customer’s accepted purchase orders will constitute authorization for VEM to procure, using standard purchasing practices, the labor, and the “Inventory” necessary for the manufacture of Products covered by such purchase orders. The Inventory includes components, materials and supplies. In addition, Customer authorizes VEM to purchase, components, materials, and supplies: (i) with lead times exceeding the period covered by the accepted purchase orders for the Products to the extent necessary for the manufacture of additional Product covered by the Customer’s forecast (“Long Lead Time Components”) and, (ii) purchased in quantities above the required amount for purchase orders to achieve price targets (“Economic Order Inventory”), and (iii) purchased in excess of requirements for purchase orders because of minimum lot sizes available from manufacturers (“Minimum Order Inventory”). Together these are called “Special Inventory”.
Material Procurement. PO’s issued by SMC in conformance with this Agreement shall constitute authorization for ABLECOM to procure, using standard purchasing practices, the components, subassemblies, materials and supplies necessary for the manufacture of the Products covered by such PO. ABLECOM shall ensure that all procurement materials conform to the Specifications. All Products produced by ABLECOM must be in full compliance with pre-approved instructions, specifications, procedures, and ECOs.
Material Procurement. 4.1 Solectron is authorized to purchase materials using standard purchasing practices including, but not limited to, acquisition of material recognizing Economic Order Quantities, ABC buy policy and long lead time component management in order to meet the PO and long lead time requirements of Brocade, solely in accordance with the authorization procedures set forth in Section 4.2. Brocade recognizes its financial responsibility for the material purchased by Solectron on behalf of Brocade.
4.2 Solectron will purchase specified quantities of long lead time material and Brocade unique material as authorized by Brocade in advance and in writing. Solectron will compile and maintain (and provide an updated version to Brocade on a monthly basis that reflects Brocade's current requirements) a report concerning this long lead time material which will contain: * Brocade part number * Solectron part number * Manufacturer name * Manufacturer part number * Manufacturer description * Lead time * Where used * Quantity per unit of Product * Purchase quantity authorized by Brocade * Purchase price authorized by Brocade * Extended price It is understood and agreed that if Brocade orders Solectron to stop production of Products for Brocade's convenience, prior to the consumption of all material authorized for purchase by Brocade pursuant to this Section 4.2, Brocade will purchase all material as provided in Section 4.3. It is the intention of both parties that Solectron effectively manages the long lead time and Brocade unique material inventory such that the inventory will be completely consumed by the end-of-support of the Products, and Brocade will consequently not have any such material inventory liability.
Material Procurement. 13.1 Material procured by the customer, regardless of its type, shall be delivered to us free domicile in perfect condition. Receipt shall be confirmed without assumption of warranty for the correctness of the quantity and quality designated as delivered. In the case of larger items, the costs associated with the payment or weight check and the storage expenses shall be reimbursed.
13.2 The client shall bear the risk of processing the material provided by him. We shall be entitled to reject material if it appears to us from the outset to be unsuitable for the execution of the order.
13.3 In the event of employment or loss of the material provided by the customer, we shall only be liable if we or our vicarious agents have acted with intent or gross negligence.
13.4 We do not assume any warranty for spice mixtures according to recipes provided by the customer with regard to their compatibility under food law.
Material Procurement. Purchase orders issued by Handspring or its' designated 3rd party distribution partners in conformance to this Agreement will constitute authorization for Flextronics to procure, using standard purchasing practices, the components, subassemblies, materials and supplies necessary for the manufacture of Products ("Inventory") covered by such purchase orders.
Material Procurement. 5.1. Customer to provide a certificate of compliance or deviation form with any Customer supplied and/or consigned material that does not agree with the AVL. Supplier is to only use material that is on the Customer AVL. Any material substitutes must be authorized in writing by Customer. Customer is to provide weekly updates to the AVL. This will be achieved via the Customer Component Information System (CIS) system. It is required that Supplier updates its AVL documentation accordingly within five business days.
5.2. The Supplier shall work with Customer to establish supply chain initiatives to enhance the overall flexibility and responsiveness of the supply chain. Supply Chain initiatives include such items as Vendor Managed Inventory (VMI), Supplier finished good hubs, raw or semi-finished good kanbans at various stages and supporting Teradyne’s Supply Chain Express Initiatives.
