What to keep in mind
Analyze capacity, quality, volumes, dependency, remedies, alternate sourcing, guarantees and orderly transition.
Supplier failure can expose the company to its own downstream commitments.
Distinctions often confused
A strategic supply agreement differs from an ordinary low-risk purchase order.
Frequently asked questions
Can a company require supply-continuity assurances?
Often through suitable service, notice and contingency provisions.
How should a prolonged supplier disruption be handled?
By reference to contract rights, cause of interruption and available mitigations.
Informational content. It is not a substitute for professional advice.