Are your supplier contracts costing you money?

As a business, do you fully understand how your supplier contracts add or detract value from your business? You know that your suppliers are a critical part of your business but when do you know when they cease to remain so?

How often do you sit down and evaluate the value of your suppliers to ensure that relationship remains key to your success? Or is it easier to just stay with the same suppliers?

Here are some thought provokers in ensuring your get the most from your supplier relationship.

When did you last undertake a supplier review? Does your business still need their services or products? Do they meet your current and future needs? Prepare a list of all your current suppliers – it may be a lot longer than you think!

When did you performance review your suppliers? Are they providing you with up-to-date information, leading edge products and technology or just the same product you’ve always had? How do they respond to your queries or complaints? Look at the marketplace and see what else is out there.

From a financial perspective, can you hand on heart say you are getting the best deal? Is there a payment review clause or maybe a clawback provision you haven’t used? Have you discussed payment terms lately?

Legally, when did you last check your supplier still had the correct accreditations or permits to provide you with the goods or services?

All of the above should be questions you are asking on at least an annual basis of all your suppliers. So what if you undertake a supplier review conclude you definitely are not getting value for money? You need to understand what options you have. From termination to re-negotiation, we can support you. You may not have an immediate replacement available or you’ve missed the auto-renewal date but planning ahead can maximise your supplier contracts’ worth to your business.

We can help undertake your supplier contract review and in the long term, not only maximise your relationship with those suppliers but also maximise your profits.

For any matters relating to business law, contact our Business Services team on 01908 660966 or 01604 828282 or email business.services@franklins-sols.co.uk