A long-term supply agreement with a tile factory should fix the things that otherwise get argued about on every order: what you buy and to what specification, how quality is checked, how much capacity the factory reserves for you, how prices are set and reviewed, lead times, packing, who owns your designs, and what happens when something goes wrong.
It sits above your individual purchase orders. Each order then only needs quantities, designs and dates, because everything else is already agreed.
Products and quality
- A product schedule listing each design, size, thickness, finish and grade.
- The technical specification for each product, with the standard it must meet, such as ISO 13006 or EN 14411, and the tests required.
- The factory's written grade definition, attached to the agreement.
- Approved reference samples, signed and dated, held by both sides.
- Your right to inspect at the factory before loading, and to appoint your own inspector.
- One shade and one calibre per design per shipment, unless you agree otherwise in writing.
Volumes, capacity and lead times
Say how much you expect to buy and how firm that is. Many agreements use a rolling forecast, with the next few months firm and later months indicative. In return, the factory reserves press and kiln capacity and commits to a production lead time after each order and deposit.
Agree what happens around planned shutdowns and fuel disruptions. Planning around Morbi shutdowns and gas prices explains why this matters.
Pricing and review
Fuel is a large part of a tile plant's costs, so factories rarely fix prices for long periods. A workable agreement sets the price per product for a defined period and states how and when it can be reviewed. Some buyers link reviews to a published gas or fuel price, with notice before any change. Confirmed orders should keep their agreed price.
Also state the Incoterm, the port of loading and the payment terms. Changing these later changes the cost and the risk.
Packing, branding and designs
- The packing specification: carton strength, boxes per pallet, pallet type, ISPM 15 marking and loading method.
- Box markings and private-label artwork, with your approval needed for every change.
- Ownership of custom designs and print files you paid for, and a ban on selling them to others.
- Confidentiality for your prices, customers and designs.
- Exclusivity, if any, defined by product, territory and period.
Remedies, term and disputes
Set remedies for late shipment, wrong grade, mixed shades, short quantity and packing damage, with clear measurement. Penalty clauses in a tile purchase contract covers the wording. Add a force majeure clause that says what counts and what does not, since a higher fuel price alone is usually not enough.
Finish with the term of the agreement, how either side can end it, the governing law and how disputes are decided. Many international agreements choose arbitration with a named seat. Have a lawyer in your market review the final text.
Next step
We draft the specification, grade definition and inspection points with you, and then check every order against them. Our services page shows what that covers. To prepare a supply agreement with a Morbi factory, book a free sourcing review.