With this term it is traditionally defined the set of the contractual relationships that allow to a’enterprise to guarantee the supplying of raw materials, products, members, to receive logistic services, distributive, in order to realize own products and to distribute them.
These contractual relationships may include contracts such as sale, administration, subcontracting, procurement, supply of works, warehousing, logistics, with the relevant specific rules on validity and liability form for each type of contract.
This means that interruptions or delays in the distribution chain (think of computer blackouts or adverse weather conditions) can also have serious consequences or involve the payment of penalties. Another critical aspect is that related to the possible defect of the products or components supplied by the suppliers that can lead to claims and serious reputational damages.
It is important therefore an accurate choice and selection of the suppliers and the adoption of contractual understandings that allow the immediate resolution of the relationships with subjects that turn out not reliable, such as, for example, the provision of contractual clauses giving right to the immediate termination of the contract in the event of failure to deliver the supplies on the previous dates or in the case of non-compliance with the technical requirements-or in the event of breach of social security or tax rules or even insurance
There may also be “change of control” clauses which allow the termination of the contract if the shareholding of the counterparty changes. In addition, so-called KPI (Key Performance Indicators) clauses can be envisaged, with which the qualitative parameters to be respected in the provision of services and supplies are established. In some sectors (in the case of agri-foodstuffs), the risk of contamination is also mitigated by extremely stringent controls at all stages of production entrusted to third parties, for example through supply chain contracts, just as it is important for suppliers to have adequate insurance cover that responds directly to any claims.
In this regard, insurance covers relating to insurance against economic damage and costs arising from the interruption of the production of the insured person shall play a central role, as a result of certain events. The latter, in fact, can directly affect the assets and structures of the policyholder, even if they concern the supplier or customers.