Vendor Management Inventory Agreement Template for Switzerland

The Vendor Management Inventory Agreement is essential for businesses seeking to optimize their supply chain operations through delegated inventory management. This document, governed by Swiss law, is particularly relevant in situations where companies want to improve inventory efficiency, reduce stockouts, and minimize carrying costs by allowing suppliers to manage stock levels directly. The agreement comprehensively covers inventory management responsibilities, system integration requirements, performance metrics, and risk allocation, while ensuring compliance with Swiss regulatory requirements, including the Code of Obligations and data protection laws. It's commonly used in manufacturing, retail, and other sectors where continuous supply chain optimization is crucial for business success.

1. Parties: Identification of the vendor and customer, including full legal names and addresses

2. Background: Context of the agreement and business relationship between parties

3. Definitions: Key terms used throughout the agreement, including technical VMI-specific terminology

4. Scope of Services: Detailed description of VMI services, including inventory management responsibilities

5. Vendor Obligations: Specific duties of the vendor including monitoring, replenishment, and reporting

6. Customer Obligations: Customer's responsibilities including access, data sharing, and cooperation

7. Inventory Management: Specific processes for monitoring, ordering, and maintaining inventory levels

8. Title and Risk: Transfer of ownership and risk allocation for the inventory

9. Pricing and Payment: Terms for product pricing, payment conditions, and any VMI service fees

10. Performance Metrics: Key Performance Indicators (KPIs) and service level requirements

11. Data Management: Requirements for data sharing, protection, and system integration

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement and termination provisions

14. Liability and Indemnification: Allocation of risks and responsibilities for losses

15. Force Majeure: Provisions for unforeseen circumstances affecting performance

16. Governing Law: Application of Swiss law and jurisdiction

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment