Common use of Cost Reduction Initiatives Clause in Contracts

Cost Reduction Initiatives. Supplier shall use all commercially reasonable efforts to establish and implement cost reduction initiatives including but not limited to production yield improvement, lower cost raw materials and other components. Supplier shall disclose to and discuss with SCRIPSAMERICA any cost reduction derived from the successful implementation of such initiatives and the parties shall negotiate an agreed upon allocation of such cost savings. Supplier and SCRIPSAMERICA shall meet every quarter to specifically discuss cost reduction initiative opportunities and the status of ongoing efforts. Best efforts shall be made by Supplier to propose cost reduction initiatives which reduce costs by a minimum of 5% for each product over the term of the agreement.