Tom Bodkin.
“Navigate and tighten up those often supplier-friendly contracts with more confidence and prepare for unexpected bumps in the road.”
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Published in association with
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IF YOU rely on the supply of packaging from a third party, you may be at risk in a number of ways. Does the quality meet your brand standards? Do the materials fulfil the environmental specification? How much wastage is acceptable?
“First impressions count, and packaging is often a substantial part of the costs in taking a product to market,” says Tom Bodkin, a partner at law firm Borneo Martell Turner Coulston Solicitors in Northampton. “Most problems can be pre-empted and addressed in your contract with the supplier, so do not be tempted to skim over or accept standard supply terms and conditions without taking legal advice first.”
A detailed review of the contract or terms of business will provide an opportunity to plug any gaps or address any concerns before issues actually arise.
Delays in delivery
The importance of timeliness will depend on your product range, but suppliers typically do not like to include ‘time being of the essence’ in the contract. This means you may be exposed to delays in delivery of your packaging materials which will have repercussions on manufacturing timelines and ultimately sales capability.
Quality control issues
Another likely issue with packaging that you could encounter may be related to the actual type and quality of materials used and whether the packaging is in fact fit for purpose. For example, if certain environmentally friendly materials were specified but different ones are used, if printing on the packaging is incorrect, or if product somehow leaks out of the packaging.
Supply contracts usually have the standard ‘must be fit for use … in accordance with industry standards’ language. For more robust protection, it is advisable to include provisions that deal with strict parameters and what recourse you would have if there was to be a breach of the quality expected.
Wastage
Some supply contracts may include a wastage buffer to allow the supplier to provide a certain percentage that may fall into this buffer. For example, a 2% to 5% buffer may be considered to be industry standard or acceptable. Therefore, including suitable rights of remedy would be important to negotiate.
How we can help
Packaging is a vital element of many products, particularly luxury goods, perishable goods, or items that are ordered online. Our solicitors will help you navigate and tighten up those often supplier-friendly contracts with more confidence and prepare for unexpected bumps in the road.
For further information, contact Tom Bodkin in the corporate and commercial team on 01604 622101 or email .
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
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