Handling a supplier's proposed material substitution

“Equivalent material” is a claim to evaluate, not an approval. Ask the supplier to pause use of the replacement on affected units while you establish what changes and how to check it; do not authorise it before making a decision.

Start by identifying how many units are affected and whether any units using the original material are already complete. Then compare the proposed material with the approved specification.

Compare against the approved specification

Record the original and proposed material by manufacturer or grade, dimensions, composition, finish and relevant performance properties. Ask why the change is needed and how many units it affects.

A small-looking substitution can alter colour, strength, care instructions, packaging fit or a claim made to customers. Identify which of these could matter for the product, then choose evidence that addresses that risk: supplier data, a revised sample, a compatibility check or an independent test.

Compare a revised sample with the approved specification and sample for the relevant properties. A data sheet can describe a material, but it does not establish that the finished product performs the same way. For a hypothetical pouch made with a different lining, check both the feel and the closure after assembly; a visual comparison alone misses fit problems.

Accept the substitution only if the evidence supports the relevant requirements. If evidence leaves a risk unresolved, request a trial or further check before deciding; if the result does not meet the requirements, require the original material or reject the change.

Original vs Proposed Material: Key Comparison Points

Make the commercial decision explicit

The buyer can accept the change with an updated specification, request a trial, require the original material or cancel or change the affected quantity under the applicable agreement. Record the decision, price, lead time, remaining stock and who owns the cost of a failed trial; tell the supplier what to use on the affected units.

business.gov.au’s “Suppliers” guidance recommends negotiating contracts with suppliers and checking they can deliver the right goods on time. For private arrangements, contract rights depend on the parties’ agreement.

If the goods are sold to Australian consumers, check that the product still meets relevant Australian Consumer Law guarantees, including acceptable quality and matching its description or sample. The ACCC provides information about consumer guarantees, accepts reports and may investigate if a business misleads consumers about their rights.

Key Compliance and Risk Considerations