Mexico Nearshore Supplier Quality Agreement Template
When a part moves to a new supplier, the purchase order alone does not tell them how you expect problems to be handled. A supplier quality agreement sets targets, approval rules, change control and corrective action in one signed document before the first lot ships.
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Mexico Nearshore Supplier Quality Agreement Template
Supplier Quality Agreement
Between Acme Precision Inc. (Buyer) and Maquinados Norte S.A. de C.V. (Supplier) Effective date: 2026-11-01 Controlling language: Both, English controls
1. Quality system
Supplier maintains a quality management system certified to ISO 9001 or an equivalent agreed in writing. Supplier notifies Buyer within 10 business days of any suspension, loss or major nonconformity finding in certification.
2. Approval of parts and processes
Initial approval method: PPAP Level 3. Re-approval is required after any change to design, material, process, location, sub-supplier or tooling, and after production has been interrupted for longer than the agreed period.
3. Performance targets
Quality target: 500 PPM or lower defective rate Delivery target: 98 percent on time in full
Buyer reviews performance monthly and shares a scorecard. Persistent misses trigger a recovery plan and may change status on the approved supplier list.
4. Nonconformances and corrective action
Response time: 24 hours containment, 10 business days for root cause and corrective action
Supplier contains suspect product at its facility, in transit and at Buyer, identifies the root cause with evidence, and verifies the corrective action. Costs for sorting and rework are handled as agreed below.
5. Traceability and records
Supplier keeps lot, heat or batch traceability from raw material to shipment, and retains inspection and process records for the agreed period. Certificates of conformance and material certificates accompany each shipment.
6. Change control and notification
| Change type | Notice required | Approval needed |
|---|---|---|
| Process or equipment change | 90 days | Yes |
| Sub-supplier or raw material change | 90 days | Yes |
| Manufacturing location change | 180 days | Yes |
| Tooling transfer or refurbishment | 60 days | Yes |
| Organizational or contact change | 30 days | No |
7. Audit and access
Buyer may audit the Supplier's facility, records and sub-suppliers on reasonable notice. Supplier flows down applicable requirements, including customer and regulatory requirements, to its own suppliers.
Acknowledgement
This is a generic starting point, not legal advice. Add your industry flow-down clauses (for example customer, export control or counterfeit parts requirements), liability terms and cost recovery with counsel before you use it as a contract.
Link supplier quality data to your ERP
Optional: a review of how scorecards and nonconformance data could be unified in your ERP.
Optional. The tool and every export work without this. No spam.
How to use the template
Choose the quality system, approval method and targets that fit the part criticality, then edit the corrective action times to what you can realistically enforce. Export to Word so you can add customer-specific flow-downs, or to PDF for the supplier to review. For Mexican suppliers, a bilingual version avoids misunderstandings and the controlling language should be chosen explicitly.
- Match the approval method to the risk of the part
- State the controlling language when you issue two versions
- Align corrective action times with your own customer commitments
- Attach the drawing, specification and inspection plan as exhibits
What the agreement should cover
A useful agreement covers the quality system requirement, part approval, performance targets, containment and corrective action, traceability, notification of changes, and audit access. Change control is the clause that most often matters in practice because uncontrolled changes at a supplier cause many field failures. Define what a change is and how much notice you need.
Setting realistic targets
A PPM target must match the part and the measurement system. Setting a tight target the supplier cannot measure leads to disputes. Use delivery targets that match how you plan in the ERP, for example on time in full against the confirmed date. Review the scorecard monthly with the supplier and tie recovery plans to measurable milestones.
Common mistakes
Sending a long generic manual no one reads, leaving out sub-supplier flow-down, and not agreeing who pays for sorting and rework. Another mistake is signing the agreement but never loading approvals and scorecards in the ERP, so purchasing keeps ordering from a supplier whose status has changed.
Frequently Asked Questions
Is a quality agreement a legal contract?
It can be if both parties sign it and it is referenced by the purchase terms, but this template is a generic starting point. Have counsel review liability, cost recovery and governing law before you rely on it.
Do I need PPAP for every nearshore part?
No. PPAP is standard in automotive. Aerospace uses first article inspection under AS9102, and other sectors use sample approval. Pick the method your customer and your own risk assessment require.
Should the agreement be in Spanish?
A bilingual version is practical for shop floor clarity. Name one language as controlling to avoid disputes about translation differences, and have a qualified translator review the Spanish text.
How often should targets be reviewed?
Review performance monthly and the agreement itself annually or after a significant event. Update targets when the supplier proves stable performance or when your customer requirements change.
Netray can connect supplier scorecards, receiving inspection and nonconformance records in your ERP so this agreement is backed by live data.
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