What documentation should you keep when resolving a vendor dispute?

Ok, so for situations like these I used to have periodic catch-up meetings with my vendors and used to log all the alignments/misalignments of the call on the organisation's central ERP and so, even if I were to exit from the company, the other person who'd talk to this vendor, now knows the entire history. It's important to document even the minutest of details because when everything goes well, nobody cares, but when there is a delivery threat, the situation can get very subjective. Hence its important to record every transaction and also alignment emails should be sent out to ensure all parties are aligned and there is no room for subjectivity. Even if no solution was arrived at, record that as well. Data is key !

Contract Documents in Vendor management. VM starts with proper contracts for all fixed routes, either per trip or monthly hiring. The contract should cover all T&C with commercials. For adhoc or trip basis hiring, proper loading slip should be taken before gate in. The loading supervisor then takes care of vehicle loading, preparing documents and handover to driver. Also need to ensure driver signature is taken for the Lorry hire challan. Explain driver about usage of tracking app and upload of PODs.

Yes. Contract is the main key area to check. Both during onboarding and exit, the criticality of the vendor plays a very prominent role. Whether the vendor is critical to the company whose termination may impact the operations of the company significantly? We must check. In those cases, checking the exit clause is a must. If it is critical, we must have to analyze the capabilities of the vendor before awarding the contract. Analyzing means not only the efficiency but in terms of pricing, data security, availability of replacement, time limit in which we will get the replacement & alternate options should also be carefully checked so that company’s operations can be ensured even after termination of vendor’s service from either side.

Yes, the first document we must have is purchase sake agreement between buyer and suppliers with better clarity with objectivity rather than subjectivity. Teems of payment, quality, quantities of goods among many others need to be well articulated.

Beim Rechtsstreit zwischen zwei Unternehmen, hebeln sich die Allgemeinen Gesch?ftsbedingungen gegenseitig aus, daher ist es umso wichtiger, wichtige markante Punkte ebenfalls in den Vertr?gen mit aufzuführen. Ebenso wichtig die Auftragsbest?tigungen. Wenn explizit nicht gegen eine Passage widersprochen wird, gilt das als best?tigt. Das ist jedenfalls mein Wissensstand...

Yes. Absolutely true. Keeping records helps a lot. Not only helps but also it saves the company going out from trap of an unproductive vendor who has already been engaged. A very simple example is keeping track of contract renewals. A “contract written in small small letters” will leave a clause that company has to give notice 30 days prior notice for an automatic renewal to happen. The lack of documentations will simply make the renewal date unnoticed and contract gets renewed. Hence, It must be documented and it must be part of the system. The policies and procedures/vendor management software/internal record keeping process should be able enough to clearly bring the facts when required. Hence documentations are must.

It is helpful to use a workflow tool that can track open issues and follow a good procedure to come to resolution. The steps of the issue management process is a key governance process that the parties ought to follow. This will ensure that comprehensive documentation related to the issue is in one place. Following this process will also make it easier to resolve the dispute without the need to escalate further.

Written communication is the key factor to be considered while settling any disputes. Periodical feedback is very vital which can be used in case of conflicts. Also, keeping track of performance, timely discussion and communicating through emails can benefit both the parties to settle amicably.

Agree the perspectives below. In my book "Contract Management - Core Business Competence" (Kogan Page, 2017) chapter 4 speaks of 'contract administration'. We have to plan for detail, we have to plan for complexity. A 'contract management plan' can be a useful practical tool. And I'm a great fan of the 'project memo system' (which originated, I believe, in the aerospace sector). This helps to regulate vast communications and detail. It goes a long way to meet the requirements and challenges we are discussing here.

Yes, again communication and correspondence to be seamless and key respective persons, better change management strategy in case any disruptions happens, both sides must trust each other and being true to each other .

Keep the actual contract and if there is a Statement of work (SOW) or a Business Initiation Agreement (BIA) as those documents will define the work that should or should not occur.

Totally agree, documentary evidence or any sort of evidence which are visible and factual will further help in reducing the conflicts with vendor. It will be more convincing and way out to learn for future business relationships.

I am proponent of using a governance tool which will ensure that all relevant information, approvals etc. are on one place. Documentation will then follow the retention policy of your company

This is the most import topic in my opinion. Not only having a clear doc management and retention plan, but a system where they can be found with ease. You won't always remember what happened, so do not trust your brain to store information: make sure all decision making conversations and discussions are being set in paper, with clear acknowledgement and agreement from all stakeholders and impacted personnel, and store them properly. Not necessary to say that timestamps are your best friend here, right?

When resolving vendor disputes, comprehensive documentation is your ally. Keep a detailed contract, communication records, and evidence supporting your stance. Post-resolution, document settlement terms and lessons learned. This not only safeguards interests but also provides data for future vendor management strategies and dispute avoidance. As a supply chain expert, I've found that robust documentation practices are key for clarity, learning, and relationship management. They serve as a reference point for continuous improvement in procurement processes. Always consider long-term implications of dispute docs on vendor relations and supply chain integrity. Open to further discuss best practices in documentation for dispute resolution

Creating strong partnership makes it easier to avoid disputes which is the better outcome. But have good processes and documentation practices ensures that you have what you need in the event this formality is needed to resolve a dispute

On my contract management seminar, I try to teach from projects that went badly! We need to be honest about what goes wrong and hopefully we can all identify with practical examples of a decision failure process (!). I won't go into the detail here, but I call my own personal disaster story, "a cautionary tale". People seem to appreciate it, especially as I draw out specific learning points.