supplier affiliate
Definition
A supplier affiliate is a company that has a close ownership or control relationship with your main supplier, such as a parent company, a subsidiary, or another business owned by the same people. Contracts often mention supplier affiliates so that the same rules, prices, or obligations that apply to your direct supplier also extend to these related companies.
Example
If you sign a contract with ABC Packaging and the contract covers supplier affiliates, then XYZ Packaging owned by the same parent company would also be bound by your agreed pricing and quality standards.
Watch Out
Make sure your contract clearly defines which companies count as affiliates, because without a precise definition you may end up doing business with a related company that operates under very different standards than the supplier you originally vetted.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.