Risk reduction through contractual standardization

Ten questions to find the Gap

Can you (or your delegate) answer most questions/statements with a strong 'yes'?

  1. Our company maintains a set of annual updated general terms and conditions for our suppliers. 

  2. We have established standard payment terms that are accepted

  3. We have a standard template for each category for setting up statements of work. The fulfillment of the statement of work requirements is tracked meticulously in our Vendor Management process.

  4. Our supply chain utilizes one set of non-disclosure agreements (NDAs) and procurement is responsible for managing them. 

  5. Confidentiality, liabilities, quality, and indemnity are clearly defined topics that require approval from business unit management before any changes can be made. 

  6. We have a repository of standard documents available for procurement to use, which are aligned with legal guidelines. 

  7. We have a set of templates for inter-company procurement and provide commercial training for all buyers on how to use these contractual templates. 

  8. We provide standard online training for any employees within the company who may be involved in purchasing goods or services. 

  9. Our legal department is focused on working with the customer-facing side of the business rather than the supplier-facing side.

If you answered ‘yes’ to most questions, great!

You have the contractual risk on the supply chain side under control.

If you answered ‘no’ or are unsure about it, you have most likely an excellent opportunity to increase resilience and reduce risk in your supply chain.

Feel free to get in contact for an exploratory dialogue with helmig advisory AG to assess the art of the possible.

Previous

21st century strategic sourcing
Next

Planning for the increasingly unexpected