Whether a manufacturer, supplier or purchaser, the risk posed by
interruption of supply is a critical consideration but yet, not
always addressed in supply contracts. Rather, many supply
agreements appear to rely on the supplier to manage its own
resources and supplies, and the answer to the
"Or What?" inquiry results in a remedy for such
events being an inadequate claim for damages. This failure to
address exposes the company to risk based upon decisions of its
supplier(s) which can result in catastrophes such as inability to
produce or supply product, adversely impacting customer
relationships, or even placing the business as a whole at risk.
While perhaps acceptable within a fictitious contractual
Shangri-La, that is not the business world we live and work in and
our world requires a different approach.
