Supplier Checklist

SUPPLIER CHECKLIST

 

All suppliers seeking to attain “Approved” status with UMMA should prepare a formal Program Proposal, which includes the elements listed below.  Additional requirements may apply to program designated for “Preferred” or “Plus” status:

1.    Provide a brief cover letter, which states general information about supplier’s product and/or service and what goals are being sought in developing a program with UMMA.

2.    Price Proposal – Should include item price listing and/or standard discount structure from standard published pricing along with the following:

a.    Effective date for implementation of proposed program, to extend through June 30, of the following year and shall continue unless terminated with 90 days written notice prior to the July 1 beginning of an upcoming model year.

b.    Supplier lead-time requirements.

c.    Minimum order requirements and freight policy.

d.    Payment Terms.  (UMMA acknowledges that Program Suppliers shall retain the right to control the extension of credit to individual UMMA Members.)

3.    Price Changes – Statement that supplier will comply with UMMA’s policy for program price changes during a model year, requiring cost increase justification and, upon acceptance of the justification from UMMA, 60 day written notice to UMMA of the change to be provided to the UMMA.  No notice of price increase will be made by supplier to any Member except after written acknowledgment by UMMA.

4.    Statement affirming agreement to provide by 20th day of each month, a summary report of transactions to UMMA along with a check for Operational and Redistribution Allowance equal to 3% (3.25% for composites products) of gross member payments received by supplier during the prior month.  (Past due payables to suppliers are not exempted from ORA obligation, except by special arrangement.  In the event that an account is significantly past due, UMMA will assist in its collection.  In the event that an account is turned over to collection, UMMA will reimburse suppliers 2% of any ORA paid on affected invoices).  Note: Participation in this program reflects acceptance that all late supplier payments accrue a finance charge of 1.5% per month to UMMA.

5.    Statement of goals and terms for accrual and payment of volume or other rebate incentive(s), which constitute incentives for targeted group participation within the proposed program.

6.    Statement of terms for access to supplier advertising funds.

7.    Statement affirming that the proposed program is significantly better than any group Member could secure from supplier based upon its individual purchase volume and is consistent with pricing program, which are offered to other organizations representing similarly large amounts of purchasing volume.  This requirement is predicated upon UMMA’s commitment that if the vendor achieves Preferred Supplier status, UMMA will assist in providing them a “fair opportunity” for access to each of its Members and to provide assistance to secure and grow business from within the UMMA Membership.

8.    Statement that in the event that the status of any UMMA Membership should, for any reason, terminate, their pricing will return to a higher level consistent with that of non-group participation and, under no circumstances will contractual obligations between the supplier and the UMMA, including the payment of ORA or Volume Incentive rebates, be passed through to any former UMMA Member.

9.   Statement that, subject to space availability, supplier is willing to attend and support UMMA’s annual Partnership Conference, at which both Suppliers and Members participate.  (Costs are allocated relative to supplier’s sales potential within the group).

10.   Suppliers are required to participate as Members of United Marine Supplier Association (UMSA) to further their relationship with UMMA Members.  We will try to hold brief meetings in conjunction with IBEX and other marine industry events to prepare for the Partnership Conferenceand for model year changeovers.  Suppliers participating in the Conference will automatically be granted UMSA Membership, at no additional charge.  However, if a supplier is unable to participate in a Conference, they may be required to pay a charge for that year for UMSA Membership.

11.   Company product warranty, sample claim form and return policy.

12.   Company information (in confidence) regarding history, marine market share, non-marine business, financial statements (if requested), product brochures, etc. This information will be kept strictly confidential.

13.   A listing of national and regional sales contacts, and independent factory representatives and key factory executives, including senior management and parties responsible for freight and logistics for marine products, including addresses, telephone and FAX numbers, and email address which are appropriate to each UMMA Member.

14.   A current list of UMMA Member OEM customers, which you currently service, including the categories they are purchasing and their annual volume.

15.   Statement as to whether your company is willing to extend your pricing program to other UMSA suppliers and/or UCMA (United Composite Manufacturers Association) Members.

In the event that any of the above terms are not provided in the proposal, they will be deemed to be included in the terms of any approved UMMA supplier and Member of UMSA, unless expressly modified and/or excluded by, in writing, by UMMA president.

In order to ensure that all suppliers are subject to the same terms and conditions, all UMSA suppliers are required to comply with the current terms of this “Checklist.”  To ensure such uniformity, any changes in the terms are included in the registration process for the annual UMMA/UMSA “Partnership” Conference and registration for and/or maintenance of status as an approved supplier is conditioned upon acceptance of the then-current terms contained herein.

Revised June 1, 2018 and supercedes all prior versions. – RKW