Hogan Lovells



You are:

You are contracting with:

Currently no law areas.

Please select a law area.

The Hogan Lovells supply chain tool helps you to explore a range
of commercial and legal issues in a complex supply chain.

Choose the relationship you want to examine, to understand the issues and for guidance on how to address them. This advice is in general terms only and not to be relied on in any specific case. To discuss the issues further or for specific advice, click the ‘Contact Us’ link above.

Back

Terminology

Raw Material Supplier

A supplier of crude or processed material that can be converted by manufacturing, processing, or a combination thereof into a new and useful product.


Original Equipment Manufacturer (OEM)

Common in the technology and automotive industries, a manufacturer of products or components that are purchased and incorporated into the buyer's product, and retailed under that buyer's brand name. The OEM is not simply manufacturing under the buyer's licence – it owns its own intellectual property in the design and production of its product or component. The OEM does not sell directly to the end-user, but often has a direct relationship with the end-user in the after-market. This category also includes White Label Suppliers, which, to make a fine distinction, produce a product as an unbranded whole, and the buyer's brand is added pre-sale.


Branded Manufacturer

A manufacturer of products (whether including components made by OEMs or not) that are sold bearing the manufacturer's own brand. The addition of the brand adds value to the product.


Outsource Manufacturer

A manufacturer that produces goods to the specifications and designs of the buyer under contract.  The manufacturer will, under licence, use the buyer's intellectual property in production. The manufacturer makes either a margin on the product sold, or gets paid a unit toll for every unit produced.


Co-Manufacturer

A manufacturer which operates with another company in a joint venture-type structure, pooling resources and intellectual property in order to produce the finished good.


Brand Owner (Non-Manufacturing)

The owner of the brand who has licensed its brand and intellectual property to be used in the production of goods. The brand owner does no manufacturing itself – all such functions are outsourced and completed under licence.


Sales Agent

A person who, in exchange for a commission, facilitates contracts between the principal (the supplier) and a third party (the customer) by introducing the third party, soliciting orders from the third party or by concluding contracts with the third party on behalf of the principal. An agent does not contract with customers in his own right and he therefore generally has no contractual liability to them. The agent has the power to create or alter the legal rights, duties or relationships of the principal – the principal is deemed to be acting "through" the agent.


Wholesaler

A business that purchases goods, often in large quantities from a supplier, warehouses them, and resells to retailers or end users.


Retailer

A business that takes title to larger quantities of products and resells them to final consumers or business end users in smaller quantities for a profit.


Logistics Provider

The business that provides the various functions of planning, implementing and controlling procedures for the efficient and effective storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.


Marketing Services Provider

The business that contracts to provides marketing services aimed at attracting customers and increasing sales of the product.


Business End Users

The final buyer of the product who is a business (as opposed to a private individual), purchasing the product for its own use in its business or as a component, or potentially as part of a product that is resold.


Consumers

Private individuals purchasing the product, as a single person or as a group (eg household), for their own personal use.


Back

Help

Elent magnati ssuntin nonsectiate consendi sinvent quossit lacea corati iusant pel ipicim ex ente debit preribusa sus se dolupienis as di nis aut et poriaec usanda doluptatur simin poruptiore nescillo maio. Elent magnati ssuntin nonsectiate consendi sinvent quossit lacea corati iusant pel ipicim ex ente debit preribusa sus se dolupienis as di nis aut et poriaec usanda doluptatur simin poruptiore nescillo maio.

© Hogan Lovells. ALL RIGHTS RESERVED. "HOGAN LOVELLS" OR THE "FIRM" REFERS TO THE INTERNATIONAL LEGAL PRACTICE THAT COMPRISES HOGAN LOVELLS INTERNATIONAL LLP, HOGAN LOVELLS US LLP AND THEIR AFFILIATED BUSINESSES, EACH OF WHICH IS A SEPARATE LEGAL ENTITY. ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.