Things to look for in a contract while selecting a supplier
When you have to supplier both having good reputation for the things they manufacture and supply but only thing that can distinguish them is the contract they presented. So which factors would you consider to look for in the contract and what are the way to negotiate this contract.In order to get a better deal?
I would look into the supplier quality agreement structure and inspect that for differences. I would identify differences between the no change clauses; these point out what changes will require permission before implementation or are there changes that require only notification. Moreover, communication and notification rules must also sufficient for the project, along with Quality and regulatory requirements relevant for material supply and the suppliers obligations. Once these aspects of the contract are laid out i would select the supplier that better adheres to the necessities of the project im on.
One of the most important things to have included in a vendor contract is the condition that they need to notify your company about any changes that they have made or are going to make to the components that they supply to your company. These changes can range from a change to the overall design, a change in tolerance, a change in material, and a change in quantity per order. It is important for your company to be notified because changes in the manufacturer's design of the component can affect the final product that you are producing and putting on the market.
I agree @as934, while having a good reputation and supplies, having information on changes is very important as well. If there is a product which your team has purchased and the vendor knows that one batch came out with a lower standard, that is something that you need to be immediately aware of. I've just done a post on quality assurance/control, this distinction could mess with the quality of your overall product or if you find out in time, throw off your expected deadline.
Know which vendor contracts affect your work. Identify a direct contact for each vendor. The important things to look for in vendor contracts are extensions and adjustments in timelines. A flexible vendor with changes in time and structures within a project is important to incur the project runs into issues.