Supply Chain Solutions No.44 – Get it in Writing

During the course of engaging a new vendor regarding future endeavours, the scope of services and deliverables through to pricing must be clearly recorded in writing. There is the obvious reason for doing so, ensure there are minutes of what was stated in the meeting for mutual agreement, but where you are dealing cross-culturally and there may be language barriers, a written confirmation becomes vital to ensure there was no misunderstanding.

Make sure that you clearly communicate any policy, scope, deliverable, pricing or payment need to the vendor and get confirmation from them – in writing – that they understand, agree or disagree with each point. You want to see the word “Agreed” or “Reject”, not ok or noted which may have an esoteric meaning.  Similarly, keep a record of any agreement change requested by the vendor and whether you accept or reject those modifications. Ensure all communication records are kept through the course of the relationship.

The majority of challenges with vendors happen due to miscommunication, which can lead to distrust which might have originated from a misunderstanding rather than duplicity.  Do your due diligence by following up verbal communication with a written email, and follow-up until there is acknowledgement.

ID Global Concepts are experts in supply chain management. We add value to your supply chain through consultancy or management contract to ensure the business has the best practice systems that are the right fit for your business, customer and meet your value expectations.

If you would like to learn, please email us at info@idgc.co or visit our website www.idgc.co

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