Ensure efficient production partnerships with a manufacturing agreement template that defines terms for production, delivery, and payment.
"It takes the sales team four clicks to generate and approve a contract in Juro. We're saving 25 minutes per contract."
Read Paddle's customer story >
.avif)
Chris McFalls,
Rev Ops
"With Juro, approvals take less than two hours, and most contracts are fully signed within a day of being sent"
Read Goldin’s customer story >.png)
.avif)
Kyle Piper,
Contracts Manager
"Everyone works out of Juro - it's the key tool we use to do our job"
Read ANC’s customer story >
Manufacturing agreements are essential for maintaining a transparent and efficient partnership between a company and its manufacturer. This article explores what manufacturing agreements are, their purpose and how to manage them efficiently using contract management tools like Juro.
A manufacturing agreement is a formal contract between a client (a business that needs goods produced) and a manufacturing firm.
This contract outlines the specific conditions under which products will be made. It covers production obligations, quality standards, timelines, costs, and shipping and delivery logistics.
By clearly defining responsibilities and expectations, a manufacturing agreement ensures both parties understand their commitments, facilitating smoother business operations.
Manufacturing agreements serve several important functions:
Manufacturing agreements are managed by professionals who specialize in various aspects of business operations.
Supply chain managers make sure that the production process is seamlessly integrated into the broader supply chain operations, coordinating with suppliers, managing logistics and overseeing the flow of materials to maintain efficiency and meet production schedules.
Lawyers or in-house legal teams review and draft manufacturing agreements to ensure they are comprehensive and legally binding. They handle compliance with relevant laws and regulations, mitigate risks and protect the company's interests by including necessary clauses and contingencies.
Procurement specialists negotiate the terms of the agreement, focusing on securing the best possible deals and maintaining a reliable supply chain. They evaluate supplier capabilities, manage supplier relationships, and work to achieve cost savings while ensuring quality and timely delivery of materials.
By collaborating, these professionals ensure that manufacturing agreements are effectively managed, balancing operational efficiency, legal compliance and cost-effectiveness.
Manufacturing agreements are crucial in several business contexts:
Businesses that do not have their own production facilities, or those that choose to focus on design and sales while outsourcing production, use manufacturing agreements to manage the relationship with their manufacturing partners. This allows them to ensure that the products are made according to their specifications and quality standards.
When a company introduces a new product, it uses manufacturing agreements to ensure that the production phase aligns with its market introduction plans. These agreements help coordinate timelines, production schedules and quality requirements to ensure a smooth and timely product launch.
As a business grows and faces increased demand, it may need additional manufacturing resources without expanding its own facilities. Manufacturing agreements enable companies to partner with external manufacturers to meet this increased demand, ensuring that production scales effectively while maintaining product quality and consistency.
A well-crafted manufacturing agreement template should include the following elements:
The manual approach to managing manufacturing agreement templates usually involves several steps:
Managing manufacturing agreements manually involves extensive and time-consuming work.
Drafting, reviewing, and updating paper documents take a lot of time, often requiring multiple rounds of revisions and approvals. This process can lead to delays and increases the risk of errors. Storing physical copies and retrieving them for reference is cumbersome, resulting in lost time and potential document loss or damage.
The need for physical signatures adds further delays, especially when parties are in different locations. And manual processes for tracking changes and maintaining version control are inefficient and error-prone.
Overall, the time lost in managing agreements manually hampers productivity and efficiency, highlighting the need for more streamlined digital solutions.
Fortunately, you can modernize and automate the process using a contract management software solution like Juro. Here’s how Juro can help:
Adopting Juro not only streamlines the management of manufacturing agreements but also enhances operational efficiency and reduces legal risks, allowing businesses to focus on growth and innovation.
Juro's AI-native contract automation platform empowers all teams to create, agree, execute and manage contracts up to 10x faster than traditional tools. To find out more, hit the button below to book your personalized demo.
A manufacturing agreement template is a ready-made contract that a business adapts each time it hires a manufacturer to make products to its specifications. It sets out the product specifications and quality standards, along with the prices and delivery schedule the two sides have agreed.
Usually, yes. A small run is often where problems show up, and without written specifications and acceptance terms you may have no clear right to reject faulty units or get a refund for them. A short agreement also confirms that your designs stay yours, which matters if the manufacturer could make the same product for someone else.
A supplier agreement usually covers buying goods or materials the supplier already makes or stocks. A manufacturing agreement covers products made to your own specifications, so it deals in more detail with quality control and who owns the designs.
Attach the product specifications and set measurable standards the goods must meet, then describe how and when you'll inspect deliveries. Agree what happens to units that fail inspection, such as replacement at the manufacturer's cost or a credit, and give yourself a fixed window to reject them. Quality disputes are much harder to resolve when the standard was only agreed by email or with a sample.
Whoever the contract says, so state it clearly. The business commissioning the products normally wants to own its designs and any molds or tooling it pays for, and to stop the manufacturer using them for other customers. Without that clause, the manufacturer may be able to claim rights in improvements it develops or keep tooling at the end of the contract.
It's a sound starting point, but it works best once you've added your product specifications and adjusted the pricing and delivery terms for the manufacturer you're working with. If production happens in another country, check which law governs the contract and how disputes will be resolved. For specific legal advice on your contract templates, consult an attorney.
Build the template in Juro once and generate each manufacturing agreement from it, with procurement filling in the manufacturer details and the volumes for each deal. When your standard position on quality or liability changes, you update that one template and every new agreement follows. Signed agreements are stored together and searchable, so you can find renewal dates and minimum order commitments quickly.
Yes. Operator in Juro can draft a manufacturing agreement template from the supply and manufacturing contracts you've already signed, learning your drafting style and the positions you usually take on terms such as IP ownership and liability caps. Legal approves that first draft, which reflects your risk appetite, before procurement starts using it.
Answer
Juro is the #1-rated contract platform for speed of implementation — connect your CRM, automate templates, and close deals without the paperwork.
Book a personalised demo
.svg){kind=logo}
.svg){kind=logo}
.svg){kind=logo}
Hello. We are Juro Online Limited (known by humans as Juro). Here's a summary of how we protect your data and respect your privacy.
