Legal Issues on Supplier Management

[cola...@gmail.com]

Between November and December, it’s necessary to renew the supplying
contract next year with each supplier, and improve upon the supplier
exploitation, supplier evaluation, supplier cooperation, and supplier
performance management, etc. Therefore, that lawyer makes the
following suggestions for your reference:

1. Hold a bidirectional seminar on the legal issues concerning
supplier management. The participants may include the relevant
managers of the Company, as well as the managers of purchasing,
financial, and logistics departments. The Company may also bring
forward some new problems for discussion.
2. To avoid or control the possible economic disputes, Modify and
standardize the contracts related to the supplier management and
relevant documentations during the performance of the contract shortly
after the seminar, including but not limited to: Annual supply
contract, Single supply contract, Quality control agreement,
Intellectual Property Rights agreement, Supplier evaluation system,
Logistics contract, Insurance contract, Equipment contract,
Maintenance and repair agreement, etc.
3. Improve the system of supplier quality control, make clear the duty
of each department, including purchasing, quality, financial, and
logistics, to avoid the buck-passing among departments; complete the
collecting of relevant evidence to quality objections, including but
not limited to: the contract and quality agreement, quality testing
report and inform letter (fastmail voucher), quality non-conforming
letter (fastmail voucher), the parties negotiation proceedings
(receiving list), returned goods notice and voucher, stock list and
photo, and warehousing fee list, etc. and establish a quality record
of non-conforming goods on time; at the same time, prescribe the
quality appraisal organ in the supply contract, so as to get the right
of the position in the settlement of quality disputes.
4. Improve and perfect the system of assessment and evaluation of the
supplier’s product quality, including supplier’s techniques, quality,
delivery, service, quality control capability, financial status,
management capability, staff qualification, and agreement performance
capability, etc.

The above opinions and suggestions are for your reference.

Bright Jon, Attorney-at-law