Global procurement

Force majeure events impact project delivery

A significant capital investment program to expand the global distribution network of our customer was hit by a perfect storm of unexpected events that not only impacted their own organisation but also that of the third-party delivery partners.

Client

Global electronics and consumable distributor

Service

Spend & risk

Sector

eCommerce

Problem

The pandemic and Brexit could not have come at a more strategic time for our customer, their distribution network expansion had been in the planning for years. A stringent supplier selection had taken place and the contracts agreed.

As the pandemic took hold it became evident the supply chain across Europe was strangled impact parts and resource, added to this the restrictions caused by Brexit and suddenly there were delays and costs being incurred at a rapid rate.

Solution

Some third parties used the Force Majeure clause in the contract to mitigate their risks, however this didn’t deter partners working together to expedite the program.

Working alongside all parties delivery, finance and planning teams we identified each challenge and risk and managed them on a daily basis. With a complex supply chain we navigated remote working, border controls and customs restrictions to negotiate multiple new plans.

Result

Whilst working within the parameters of the contract and the deliverables we were able to:

  • Maintain delivery of the IT development via remote working and frequent video calls
  • Manage supply chains to make more frequent partial deliveries to maintaining some pace of build
  • Costs were absorbed by both parties to manage liabilities and keep focus on driving forward
  • Compensation clauses were invoked where delays were clearly due to supplier mismanagement
5 Suppliers managed £30m Third party spend
Emily has all of the key attributes needed to handle difficult conversations/ negotiations with senior stakeholders across both sides of the fence. She has a keen eye for detail which was evident when carrying out the commercial evaluations, reviews and negotiations.”

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