Case studies

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Case Study: Contract

“No need of complicating things with a contract”

Without a contract you are exposed to: non-delivery, poor quality, price rise, liability if someone gets injured on your premises

Example: Lime (bulk chemical deliveries)

Situation:

  • Few suppliers on the market
  • 50% of product cost is the cost of the energy to make it
  • Electricity and gas prices are volatile
  • Dangerous product if in contact with the skin

Strategy and action:

  • Tender to select the best supplier
  • Our terms and conditions were included in the tender to start the negotiation on our terms
  • Negotiation with supplier to cap the price variation and the liability amount
  • Define minimum safety standards
  • Define responsibilities in case of problem/accident during the delivery

Result:

  • Cap on price variation at +/-5% = no surprise if cost of energy rocketed, the supplier couldn’t pass more than 5% of the increase
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