I posted two articles on my blog recently that together explain why I recommend implementing a transition period into your performance-based contract (PBC) rather than starting all aspects of the contract immediately on day one.

A supplier contracts to deliver power-generating equipment. In breach of contract, it supplies equipment that does not work. The customer claims damages including:

Let’s say a costly and lengthy dispute hits your organization with high court costs and settlement fees!

Everyone knows that “business hates uncertainty.” It poses clear threats to business, but offers significant opportunities as well.

Editor’s note: This article is an excerpt from the book “Contract and Risk Management for Supply Chain Management Professionals” published by X. Paul Humbert, Esq¹.

Late payments and extended terms are still an issue for firms globally. But changes in business culture and increased policy attention seem to be heading in the right direction.

People are asking about NEC contracts – are they appropriate for us? Do they support collaboration? Can we use them anywhere?

We all need to understand the impact blockchain is having on industry and supply chains today.  Not at all futuristic – it’s happening now -- but many people don’t have a clue what it is!

Whether you are a customer or a supplier, Speed to Contract (“S2C”) produces benefits. The faster parties come to “yes,” the sooner critical products or services can drive a customer’s business success, the quicker involved personnel can shift to other tasks, and the earlier revenue streams can hit the supplier’s books.

Imagine a start-up.  It has seed capital and a pristine whiteboard on which to map business processes. With no constraints tying managers to how they operate today, they can design and implement sales tools and systems that reflect their optimal desired state.  

They can deliver these solutions to the organization’s new employees as the only way to manage and conclude a sale. It’s such a nice dream!