Steve Hunting and Elizabeth Trenary wrote an article in Supply & Demand Chain Executive on how companies can make contracts a fundamental part of their risk management strategy.
"Contract language is sometimes overlooked, often boring, but always critical when the unexpected happens," Steve and Elizabeth wrote. "Companies worldwide are learning that lesson because of the coronavirus disease (COVID-19) pandemic. Force majeure used to be an arcane concept in a lonely clause near the end of many contracts. The pandemic has elevated its importance and made companies reassess what their current language says and whether they should change it going forward."
"Force majeure is just one example of how contracts can play a critical role in building resiliency," they continued. "As companies reexamine their supply chains and risk management strategy, it is important that they take a fresh look at their contracts as part of that assessment. By carefully analyzing force majeure clauses, building resiliency in other parts of contracts, and streamlining the overall contracts process, companies can better navigate the remainder of the pandemic and put themselves in a stronger position for the next unexpected supply shock."
You can read the full article here: How Contracts Help Build Resiliency in the Face of Unexpected Supply Chain Interruptions.
Supply & Demand Chain Executive has an audience of more than 53,000 C-level executives.