Negotiate your contract better! Here are our main points

Now for better Negotiate your contract, it is a prerequisite for The Purchase function to fully know your risks!

Knowing how to identify the risks associated with your purchases means finding a solution to control them. The more mature Purchases are in your companies and the greater the risk borne by the Buyer, which is why we offer you a list of major contractual risks so that you can better: Negotiate your contracts

What control have you put in place? What answers can your lawyers give you? Have you set up a Contrateca ?

Here is a list of the main risks you should be aware of before signing a new contract:

1. FINANCIAL RISKS IN CONTRACT NEGOTIATIONS

• Price: Non-compliance with contractual rates or unexpected and unpredictable variations related to raw materials or currencies
• Supplier failure and sustainability/business continuity
• Non-payment by a supplier leading to late payment interest and penalties

2. REGULATORY AND LEGAL RISKS

• Fraud: fictitious suppliers, overbilling, embezzlement...
• Financial dependence on the supplier, abusive termination and management of the purposes of commercial relationships
• Absence of Civil Liability/Decennial insurance from a supplier resulting in the non-coverage of a claim

3. COMPUTER RISKS

• Loss of data, passwords...
• Loss of control of the computer system
• Hacks through the intervention of an insufficiently audited supplier

4. COMMERCIAL RISKS

• Automatic renewal of contracts over a new period
• Loss of reputation due to social conflict, legal dispute, or quality defect
• Loss of confidentiality or strategic intellectual property

5. SOCIAL RESPONSIBILITY RISKS

• Hidden work with a subcontractor
• Non-compliance with working conditions
• Obligation to collect Sustainable Development data for the annual report

6. ENVIRONMENTAL RISKS

• Non-compliance with safety and chemical standards such as REACH, RoHS, FDS...
• Pollution and product recycling
• Poor collection of environmental data within your company

7. INDUSTRIAL RISKS

• Poor quality and product returns
• Logistical risk such as delivery delays and customs or regulatory constraints
• Technological loss in favor of a competitor or a new law

7. INDUSTRIAL RISKS

• Poor quality and product returns
• Logistic risk such as delivery delays and customs or regulatory constraints
• Technological loss in favor of a competitor or a new law

Each Buyer has the duty to alert their management to the risks identified on their perimeter. A prior audit is recommended by reviewing all your contracts:

1. Identify all supplier risks.
2. Make a list of risks and detail the potential intensity:

• Define the criticality of each risk
• Rank them probability of achievement
• Define the preventive and curative actions to be put in place, if necessary
• Identify who should be involved and what their responsibilities are

The + Vigilegal.com

The Portal Vigilegal.com accompanies you in the rollback of your exposure to supplier risks.

It is an essential tool for centralizing information and especially for the sustainability of your Purchasing actions.

Vigilegal.com collecting essential documents from suppliers for you by sending email and telephone alerts.

Olivier Audino, CEO
Graduated from Grenoble School of Management.

Before founding Buy Made Easy, Olivier worked for 7 years in the Purchasing Department of General Electric, United Technologies and the SEB Group.

It is by sharing with operational staff and business leaders in France and Europe that the idea of offering a marketplace that is easy to use and exclusively dedicated to the expectations of professionals was born.

Download our white paper on procurement negotiations for free!

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