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A Supply Chain Agreement sets the rules and responsibilities between companies involved in moving products from manufacturers to end users in Indonesia. It covers everything from production schedules and quality standards to delivery terms and payment conditions - essentially creating a clear roadmap for how goods will flow through the supply network.

Under Indonesian commercial law, these agreements help businesses manage their supply chain risks and comply with local regulations like the Trade Law No. 7/2014. They're particularly important in sectors like manufacturing, retail, and export-import, where companies need to coordinate multiple suppliers, logistics partners, and distributors while maintaining consistent product quality and timely delivery.

Use a Supply Chain Agreement when you're establishing long-term relationships with multiple suppliers, manufacturers, or distributors in Indonesia. This becomes essential when coordinating complex operations across different regions, managing inventory from multiple sources, or setting up distribution networks that need consistent quality standards and delivery schedules.

The agreement proves particularly valuable when expanding operations into new territories, dealing with high-value goods, or navigating Indonesia's strict import-export regulations. It helps prevent disputes by clearly defining responsibilities, establishing quality control measures, and ensuring compliance with regulations like the Trade Law No. 7/2014 and local distribution requirements.

• Basic Supply Chain Agreements focus on fundamental supplier-distributor relationships, covering quality standards and delivery schedules
• Manufacturing Supply Agreements emphasize production specifications, raw material requirements, and quality control processes
• Distribution-focused agreements detail logistics, warehousing, and regional distribution rights across Indonesia's provinces
• Import-Export Supply Agreements specifically address customs compliance, international shipping terms, and documentation requirements under Indonesian trade laws
• Industry-specific variations adapt to unique requirements in sectors like food and beverage, pharmaceuticals, or electronics manufacturing

• Manufacturers and Suppliers: Sign Supply Chain Agreements to define production standards, delivery commitments, and quality control measures
• Distributors and Wholesalers: Use these agreements to establish their rights and obligations in moving products through Indonesian markets
• Legal Departments: Draft and review agreements to ensure compliance with Indonesian trade laws and regulations
• Supply Chain Managers: Oversee implementation and monitor performance against agreement terms
• Quality Control Officers: Enforce product standards and specifications outlined in the agreement
• Finance Teams: Handle payment terms, invoicing, and financial compliance aspects

• Partner Details: Gather complete company information, business licenses, and tax registration numbers for all supply chain participants
• Product Specifications: Document detailed requirements for quality standards, packaging, and handling instructions
• Operational Terms: Define delivery schedules, minimum order quantities, and storage requirements
• Compliance Check: Review Indonesian trade regulations, import-export rules, and industry-specific requirements
• Risk Assessment: Identify potential supply chain disruptions and include appropriate mitigation measures
• Payment Structure: Outline payment terms, currency considerations, and financial guarantees
• Document Generation: Use our platform to create a legally-sound agreement that includes all essential elements

• Party Information: Complete legal names, addresses, and registration numbers of all supply chain participants
• Scope Definition: Clear description of products, services, and territorial coverage within Indonesia
• Performance Terms: Detailed quality standards, delivery schedules, and acceptance criteria
• Payment Provisions: Price structures, payment methods, and currency specifications
• Risk Allocation: Clear assignment of liability, insurance requirements, and force majeure conditions
• Dispute Resolution: Choice of Indonesian law, jurisdiction, and arbitration procedures
• Termination Rights: Specific conditions for ending the agreement and post-termination obligations
• Compliance Clauses: References to relevant Indonesian trade laws and regulations

A Supply Chain Agreement differs significantly from a Supply Agreement in scope and complexity. While both deal with the provision of goods, Supply Chain Agreements cover the entire network of relationships and processes from raw materials to end delivery, whereas Supply Agreements focus on a single supplier-buyer relationship.

• Scope and Coverage: Supply Chain Agreements coordinate multiple parties across different stages of production and distribution, while Supply Agreements typically involve just two parties in a direct transaction
• Operational Detail: Supply Chain Agreements include comprehensive logistics planning, inventory management, and quality control across the entire chain; Supply Agreements focus mainly on delivery terms and product specifications
• Risk Management: Supply Chain Agreements address network-wide risks and contingencies across multiple touch points; Supply Agreements concentrate on risks between immediate parties
• Compliance Requirements: Supply Chain Agreements must align with Indonesian regulations at each step of the distribution network, while Supply Agreements focus on point-to-point compliance