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What's good for today is great for tomorrow Empowering supply chains

Brexit, the pandemic, the war in Ukraine, instability in the far east, inflation, energy and cost of living crises will continue to add pressure to supply chains, not to mention the increased consideration of ESG regulations and the move to more sustainable practices. 

What's good for today is great for tomorrow

It is no secret that the success of a business is almost certainly linked to the performance of its supply chain; we are now operating in a multi/omni-channel world — what was conceptual pre pandemic, is now the norm.

Some firms solve single point issues. Some firms focus on the future only, neglecting today’s issues.

Weightmans empowers your supply chain by applying its risk mitigation and commercial nous to solve today’s issues whilst making life easier for tomorrow.

Weightmans can help you with 

  • Supply chain due diligence

    Businesses operate in complex surroundings, placing reliance upon global value chains for the provision of goods and services. This can include all activities related to the production of goods or provision of a service; from its development, to its disposal, and everything in between.

    We are familiar with the need to conduct due diligence upon suppliers so as to identify risks to the provision of their goods or services however, the categories of potential risk and expectations regarding the scope and adequacy of this due diligence are changing. 

    No more so than in respect of concepts of sustainability within the supply chain. Consumers expectations of responsible business have never been higher; not just in respect of a business’ own activities but also that of its partners within the value chain. Businesses that get it right not only hold a competitive advantage (accessing increased consumer demand, availability of ‘green’ finance, new tender opportunities to name a few) but reduce the risk of supply chain disruption and reputational damage. Supply chain sustainability has emerged and is here to stay.

    Our team can help you identify material risks with your business/suppliers, take steps to prevent those risks materialising and, if necessary, work with you to respond to any issues as they arise. You can take piece of mind from the fact that key operational risks have been identified and controlled.

    Contact our experts Simon Colvin or Nick Barker who will be happy to help. 

  • Regulatory developments

    The global nature of supply chains and complexity of domestic/international regulation must be navigated with care.

    Despite a common commitment to making trade easier, this is not resulting in a reduction in regulatory obligations impacting upon BAU operations. In fact, developments in both ‘hard’ law (legislation passed both abroad and at home) and ‘soft’ law (corporate governance and industry guidelines and standards) mean that it has never been more important to be aware of the legal regulations applicable to your business model.

    Weightmans have subject-matter experts helping you understand the regulations impacting upon your market place (corporate sustainability due diligence, corporate sustainability reporting, modern day slavery, environmental and health and safety obligations, directors duties) as well as any sector-specific requirements that you are facing. We provide advisers who know the law and are ready to help you navigate it.

    Contact our experts Nick Barker or Anna Naylor who will be happy to help. 

  • Cross-border collaboration

    Approximately 95% of all UK imports and exports are moved by sea, carried by liner shipping companies. These liner shipping companies frequently look to cooperate with each other and provide joint services through consortia. This co-operation can extend to, for example:-

    • the joint operation of liner shipping services;
    • capacity adjustments in response to fluctuations in supply and demand;
    • the joint operation or use of port terminals

    as well as ancillary activities.

    While the activities of these consortia, although potentially anti-competitive, benefit from an exemption from competition law applying in the UK and EU, this exemption does not extend to agreements, arrangements or understandings between them in relation to other potentially anti-competitive activities such as fixing prices or allocating markets or customers. Indeed, a number of competition authorities have raised concerns that shipping lines and logistics businesses have exploited recent supply chain disruptions as a cover for illegal anti-competitive conduct, such as collusion.

    Further, the current competition law exemption for liner shipping consortia activities will expire in 2024 and, following Brexit, the UK is likely to adopt its own rules in this field distinct from those which will operate in the EU.

    We can advise businesses on the legality of their activities and conduct under competition laws and keep you up to date with upcoming legal changes in this field. We also have a track record on advising on rights and remedies if you believe that you have been the victim of illegal anti-competitive conduct.

    Contact our expert Laurence Pritchard, who will be happy to help.

  • Contracts

    Global challenges are increasingly making businesses take stock of their existing and future contracts.

    Contract clauses such as termination, business continuity, exit, service delivery levels, notice provisions and force majeure have increasingly gathered attention as challenges to contract delivery and payment pressures have risen due to supply chain issues.

    Leaving a contract

    Looking to exit a contact early is not always easy. Where looking to leave a contract it is advisable to:

    • Read the contact thoroughly and perhaps attain legal advice to ensure you are across all the detail and know your contractual position
    • Consider all your options and if other courses of action are open to you
    • Carefully review the termination clauses contained in your contract and consequences of termination.
    • Pay special attention to notice provisions and if looking to serve notice, ensure you correctly comply with the provisions
    • Check if any contract renewal anniversaries exist or if any other key dates feature
    • Consider the obligations contained on the contract and if there has been any failures/breach by the other party you can use
    • Check if any beyond reasonable control/force majeure provisions exists that you can rely on  
    • If you entered a contract on the basis of a written or verbal statement that turned out to be untrue or misleading, then you may be able to argue misrepresentation, as a means of termination
    • Once clear on your position, you may wish to try and agree an amicable exit with the other party.

    Future proofing contracts

    Businesses can also look to future proof contracts by building in provisions that allow contracts to adapt to the challenges. Some examples include:

    • Agreeing more favourable payment provisions, such as upfront payments, milestone payments, late payment interest and potentially provisions to support a party suffering financial hardship to seek a contract change to payment obligations which allows the contract to continue but mitigates the immediate impact of the cash flow crisis.
    • Agreeing additional termination provisions, including right to terminate for convenience.  
    • Including clear force majeure provisions and mechanisms of exit/no liability.
    • Agreeing service levels adjustment and service credit relief in instances of global and supply chain challenges.
    • Carefully considering business continuity requirements, along with business continuity insurance.
    • Securing clear internal governance and performance reporting, as well as sound forecasting to help with being responsive and prepared.

    Contact our Corporate and commercial expert Nicola Gonnella who will be happy to help with any issues or questions you have around your supply chain contracts. 

Contact us

If you have any issues or concerns regarding your supply chain, we are here to help. Just like you, we do not operate in silos, how we are structured and our breadth of experience of the issues you face, enables us to provide legal advice and solutions that are as individual as you are.

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