UK buyers admit to amending contracts

More than half of UK buyers responding to the latest SM100 poll have made changes to purchasing agreements after they have been signed. Of the 100 buyers polled by Supply Management, 61 per cent confessed to making the amendments after they had been signed, compared with 39 per cent who said they had not. The Supply Management poll follows research on 50 firms by Culina Logistics, which found that food, and drinks manufacturers are reporting inefficiencies in their supply chains caused by the cost-cutting measures of retailers. Manufacturers said retailers were creating inefficiencies by changing their ordering process to make more frequent but smaller stock orders.

Gary Moore, procurement performance manager at  BAE Systems Instate believes agreements can be changed at any time as long as it is mutually agreed between the parties. “This is generally not controversial if it is to reflect a change to the contractual baseline, to bring it into line with what is actually happening as the project progresses. This is good practice,” said Moore.

Source Supply Management