Vendor Managed Inventory Agreement Practical Law

by Jill & Cathy on October 13, 2021

Now that we`re talking about what I call the “covid 19 crisis,” in the COVID-19 era, here are ten things I believe the COVID-19 crisis has taught us, that we need to understand when we enter the COVID-19 era and envision the transformation of construction and infrastructure chains: the temptation is to consider Global vs Local Sourcing as a mere binary choice, to reduce risk and build resilience in supply chains. The reality is more complex, as your choice to switch to a more local supplier only makes sense if their supply chain is also reprofiled. These include mapping the supply chain through another`s supply chain. Another way to think about supply chain risk could be the relative complexity of that chain, with an emphasis on “complex to simple,” where possible. The problem is obviously the complexity of existing supply chains in general, including for what are considered commodity products. Economist magazine recently talked about coffee and found that 29 companies from 18 different jurisdictions typically had to work together to make “a modest cup.” International construction and infrastructure chains are complex. Some have been resilient, others have not. It`s understandable that construction lawyers tend to focus on construction contracts, but supply chains for construction and infrastructure are far below the core and subcontractor levels we`re familiar with. The problems and challenges that arise further into supply chains are the genesis of much of the time and cost pressure that leads to requirements in the contracts we advise. The COVID-19 crisis was of course the ultimate storm that had a simultaneous and global impact on the workforce, logistics, distribution and distributors. “.

We have created global supply chains that, despite all their efficiency, have very little resilience. ยป.

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