Maximizing Transparency in Supplier Contracts

Maximizing Transparency in Supplier Contracts

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Complex, global supply chains encompass a multitude of supplier/customer relationships. A recipe for a successful relationship is one where both the supplier and customer work towards the same goals and objectives as a partnership. Effective partnerships are based on accountability, agreed upon standards, and transparency. Blind trust is not a formula for success in partnerships because partners will question the unknowns. In procurement unknowns can be cost, profit margins, service levels, prepayments, staffing levels, etc.. The best way to ensure a successful partnership between customer and supplier is to put all the facts on the table with a well negotiated, transparent contract. 

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