Establishing 3rd Party Logistics (3PL) Service Provider Relationships – Common Pitfall # 3 – Structure of the Agreement

Far too often the structure of the agreement between the parties is developed in a manner that will not necessarily support the dynamic business requirements of the relationship.

The traditional method of embedding the business requirements within the contract tends to restrict the amount of operational flexibility of the relationship.

An alternative to this is to separate the terms and conditions from the business requirements.

This removes the need for legal and senior management approval of changes to the business requirements that are immaterial to the terms and conditions of the agreement.

Leave a Reply