When drafting a supplier NDA, the disclosing party should define confidential information to cover pricing structures, manufacturing processes, product specifications, supply chain details, and any proprietary business data shared with the supplier.
Clearly state the supplier’s obligations, including restrictions on disclosure to third parties, limits on using confidential information outside the scope of the supply relationship, and procedures for returning or destroying sensitive data upon termination.
Consider addressing intellectual property ownership, remedies for unauthorized disclosure, and compliance with applicable trade and data protection laws. Consulting legal counsel ensures the NDA provides strong and enforceable protection for the business.