Supplier Material Changes Clause Samples
The Supplier Material Changes clause defines the requirements and procedures for a supplier to notify and obtain approval from the buyer before making significant changes to materials, components, or processes used in the production of goods or services. Typically, this clause applies to any alterations that could affect product quality, performance, or compliance, such as switching raw material sources or modifying manufacturing methods. Its core function is to ensure that the buyer maintains oversight and control over critical aspects of the supply chain, thereby minimizing risks related to product consistency, regulatory compliance, and customer satisfaction.
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Supplier Material Changes. In the event that Supplier at any time makes any changes, improvements, additions or enhancements to the Products that materially affect the form, fit or function of a Product (“Material Change”), Supplier shall provide [ * ] prior written notice to Customer of such Material Change, outlining the nature of the Material Change and any applicable non-recurring costs or impact on Delivery Dates or Product pricing. Customer shall approve or reject a Material Change within [ * ] from receipt of Supplier’s notice, failing which the Material Change shall be deemed accepted by Customer. In the event of acceptance of any such Material Change, this Agreement shall be amended, in writing, to reflect any applicable non-recurring engineering costs or impact on Delivery Dates or Product pricing.
Supplier Material Changes. In the event that Supplier at any time makes any changes, improvements, additions or enhancements to the Products that materially affect the form, fit or function of a Product ("Material Change"), Supplier shall provide ninety (90) calendar days prior written notice to Customer of such Material Change, outlining the nature of the Material Change and any applicable non-recurring costs or impact on Delivery Dates or Product pricing. Customer shall approve or reject a Material Change within fifteen (15) calendar days from receipt of Supplier's notice, failing which the Material Change shall be deemed accepted by Customer. In the event of acceptance of any such Material Change, this Agreement shall be amended, in writing, to reflect any applicable non-recurring engineering costs or impact on Delivery Dates or Product pricing.