Commitment Matters

In its latest report on the coronavirus pandemic, IACCM reveals the scale of impact on worldwide industry and commerce. In just two weeks, the percentage suffering moderate to severe effects on contract performance has jumped from 37% to 60%. However, as the report reveals, there are considerable variations across geographies and across industries, with some of those who were feeling limited disruption just two weeks ago now at the top of the list.

Coronavirus is creating many challenges – and negotiation is high on the list. As business suffers, the need to renegotiate many existing agreements, to resolve issues over force majeure, to agree revised volumes or deadlines means that, if anything, the volume of negotiations will increase and skilled negotiators will be in high demand.

The last few weeks have seen a lot written about the impacts of coronavirus on supply chains. The fear of supply shortages and consequent disruption to production underlies many of the predictions of a global economic slowdown. How worried should we be?

Let’s face it, professions are both good and bad. They create standards and promote integrity. But they also introduce restrictions and delays.

As social expectations grow, organizations are increasingly focused on defining 'purpose'. This was a major theme at the 2019 World Economic Forum and momentum has continued, most notably with the recognition by 181 top CEOs that 'business needs a purpose beyond profit'.

This may seem a rather provocative headline - but it is apparently a question frequently asked by business people in Asia, based on their experiences with counterparts from the Western world.

Effectively managing suppliers is not easy. In many cases, the tools and systems that support supplier management are at best rudimentary. Indeed, a report released this week by the Supply Chain Research Council reveals that Excel spreadsheets 'remain the most commonly used analytical tool'. Not an especially powerful way to gather, analyze or act upon data.

For 20 years, IACCM has been at the forefront in identifying and quantifying the impact of good contract management on business results. Value is achieved in several ways - for example, reducing contract value erosion, supporting contract growth, contributing to reputation and ensuring ethical practices.

We have all witnessed it. Whether it’s our kids and their obsession with computer games and mobile phones, or the way that email has come to dominate our working day, or the extent to which physical meetings have been replaced by conference calls and webinars ... technology continues to transform communications and the nature of human interactions. And that has very real consequences for the quality of life and the value that is generated from relationships.

IACCM has today issued the results of its latest survey into payment terms. This multi-jurisdictional, cross-industry study attracted input from 393 organizations and gathered data from the buyer community, therefore reflecting terms and policies in business-to-business transactions.

Tim Cummins, President of IACCM, Professor, Leeds University School of Law; Chair, International Commercial & Contract Management

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Commitment Matters

Tim Cummins, President of IACCM, Professor, Leeds University School of Law; Chair, International Commercial & Contract Management

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Does Commitment Matter To You?