Procurement people are shooting themselves in the foot – IACCM

The July IACCM Newsletter reports on its research results suggesting that procurement people at many companies are jamming onerous contract terms and conditions down the throats of their suppliers — but that this approach may in fact be counterproductive.

“Ironically, as so much IACCM literature explains, this approach to risk management is self-defeating. By pushing onerous terms onto suppliers, the buyer has not achieved reduced risk – in fact they have frequently increased the probability of things going wrong.”

Read it all.

See also: (list is automatically generated)

• Insisting on the right to consent to an assignment might be shooting yourself in the foot, sales-wise

Tagged as: Contracts, Risk management, Supply chain