A good relationship with suppliers is essential to the operation of many businesses. However, in the course of establishing and maintaining a strong working relationship with your suppliers, it is easy to underestimate the need for a tailored supplier contract.
In many cases, businesses sign a standard supplier terms and conditions, which are usually biased in favour of the supplier, rather than in your best interests as a purchaser. If this applies to you, take a look at our last article, where we discussed the need to negotiate contracts to save you money.
On the other hand, if your business engages in dealings with suppliers on an ad-hoc basis without supplier contracts, you should ask yourself the following questions:
- Do you have a plan-in-action if your supplier decides to hike up their prices?
- What happens if your supplier is unable to deliver your merchandise in time for your deadlines?
- Do you have avenues for recourse if your supplier delivers a product that is faulty or of low quality?
Having a supplier contract can help you to protect your business against future conflicts with your suppliers.
For a more detailed report on how your business fares in regards to supplier and consumer contracts, intellectual property, leasing and more, just contact Gladwin Legal (ph: 1300 033 934 or email: ) for a no-obligation quote.