FORECASTS, ORDERS, MATERIAL PROCUREMENT Clause Samples
The "Forecasts, Orders, Material Procurement" clause defines the procedures and obligations related to the buyer's provision of demand forecasts, the placement of purchase orders, and the supplier's procurement of materials to fulfill those orders. Typically, this clause outlines how far in advance forecasts must be provided, the binding nature of orders versus forecasts, and the supplier's responsibility to secure sufficient materials based on these projections. By establishing clear expectations for communication and material planning, the clause helps ensure timely delivery of goods and minimizes the risk of supply chain disruptions or excess inventory.
FORECASTS, ORDERS, MATERIAL PROCUREMENT. 5.1 FORECAST: SMC shall provide a non-binding two-month rolling forecast to ABLECOM three (3) months prior to the purchase of raw material. For example, a forecast shall be provided in the beginning of July for October and November of that year.
FORECASTS, ORDERS, MATERIAL PROCUREMENT. 2.1 FORECAST: SMC will provide Manufacturer with a rolling forecast of **** months. These forecasts are non-binding on SMC.
2.2 PURCHASE ORDERS: SMC will issue purchase orders (“Purchase Orders”). Purchase Orders shall normally be deemed accepted by Manufacturer within **** **** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. days of receipt. If Manufacturer wishes to reject any Purchase Order, Manufacturer must notify SMC within **** days of the receipt of that Purchase Order. The parties agree that the terms and conditions contained in this Agreement shall prevail over any terms and conditions of any purchase order, acknowledgment form, invoice or any other instrument.
FORECASTS, ORDERS, MATERIAL PROCUREMENT