Subbing out manufacturing in another country

[Anna McCarthy]

Hello,

We have an order to supply our products to a large firm in Canada. However, the logistics make it impossible to manufacture then ship to Canada.

We are looking to sub out the manufacturing to a Canadian company. How can we protect our relationship with our customer to ensure the Canadian firm doesn't contact the customer directly and then sell cheaper than we can supply?

Anyone done something similar?
Would a Confidential agreement be required?

Thank you

 

[MOIC]

You would need water tight contracts with both the customer and the manufacturer.

Even with these contracts, there could still be problems . . .

Shipping costs are relatively low at the moment, have you calculated the costs of delivery?

 

[GraemeL]

You might make it easier by agreeing with a manufacturer that they can supply direct and you are given a % of orders.