Agreements Only

Before starting a formal contracting process, companies need to determine if it is right for them. Some relationships, like for example. B the purchase of products and services of raw materials, are really transactional and only need traditional contracts. However, many organizations need complex long-term relationships for which the vested methodology is well suited. Unfortunately, this story is not unique. Companies understand that their suppliers are essential partners in reducing costs, improving quality and promoting innovation, and leaders regularly talk about the need for strategic relationships with common goals and risks. But when contract negotiations begin, they are due to contradictory logic and a transactional approach to the contract.