How can you manage supply chain disruption during contract renewal?

3 Negotiate with your supplier

Once you have a clear idea of what you want and what the market offers, you can negotiate with your supplier to renew your contract. You should aim for a win-win outcome that balances your interests and theirs. You can use various negotiation strategies, such as building rapport, asking questions, making concessions, or using leverage, to achieve your desired results. You should also document the agreement and clarify the roles and responsibilities of both parties.

4 Monitor and manage your supplier

After you renew your contract, you need to monitor and manage your supplier's performance and compliance. You should establish key performance indicators (KPIs), service level agreements (SLAs), and feedback mechanisms to track and evaluate how well they deliver on their promises. You should also communicate regularly, resolve issues promptly, and recognize their achievements. You should also be prepared to adjust your contract if the situation changes or the disruption persists.

6 Learn from your experience

Managing supply chain disruption during contract renewal can be a learning opportunity for you and your supplier. You can use the lessons learned from the disruption to improve your relationship, processes, and outcomes. You can also use the best practices and insights from the contract renewal to enhance your supplier sourcing skills and strategies. By learning from your experience, you can be more resilient and adaptable in the face of future disruption.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?