Changing Conditions and Contracts
Purchasing and supply management professionals need to minimise any disadvantages created by the possibility of diversification e.g. their organisation being sold from the parent company. One way to minimise disruption is to ensure that the contracts they are party to before being sold off are still available to them to use for a sensible period of time.
This can be achieved through the use of clauses in contracts such as those on contract assignment. Equally, where the purchasing and supply management function prefer, they should be released from contracts where, for example, they prefer to source locally from smaller suppliers.
The same issues are encountered not just in the merger/acquisition arena but also where a company may win an outsourcing contract from another company (e.g. a third party supplier to provide call centres previously provided inhouse).
In this case there is a greater pressure as the customer can of course choose to bring such service provision back inhouse so there is a prime need to get everything running as efficiently and cost effectively as soon as possible.
2009-01-22 15:55:14