Possible future course on Re-starting supply chains.

We are already running some courses online, and probably about to start re-working some for the middle east market.  Looking at the courses made me wonder if there might be interest in a new course....

When things do start getting back to "normal", it will not be like flicking a switch.  A lot will have changed in the supply market, and particularly in the demand market.  Supply chains take a lot of work to make them Efficient, i.e. Lean.  Which means that they will not be Resilient.  So, our lovely smooth Lean supply chains are going to splutter into life rather than spring back perfectly formed.  There will be lots of blockages, broken links and delays.
Some businesses will be out of business - others will have changed their mode of operation.
Should we still buy from China?  Or should we develop local suppliers (who may be more expensive at first).
What did our contracts say about Force Majeure and what should they say for the future?

If you think there would be interest in such as course, please do let me know.  I am particularly interested in what you think should be covered, and whether we can do it in 1 day or will need 2.

Take care of you and yours.

some links on Force Majeure

Force Majeure is a pretty common discussion point at the moment thanks to Covid19.
The folks over at Supply Management magazine, the magazine for CIPS members, has run a number of useful articles that may be helpful.  In particular they point out that the doctrine of frustration may apply if you don't have a Force Majeure clause - or don't have a clause in it that specifically applies to Pandemics.

https://www.cips.org/supply-management/analysis/2020/march/coronavirus-what-you-need-to-know-about-force-majeure/

https://www.cips.org/supply-management/analysis/2020/march/coronavirus-ending-contracts-without-force-majeure/

If in doubt, have a look at your contracts - then talk to your Procurement Manager and lawyer  (I'd suggest that way round - it might be cheaper).

Force Majeure and Covid-19

One of the things that I say in my courses on contracts is that it is only when things we go wrong that we actually look at the fine print in the contract.  Well the Corvid 19 situation is definitely a time when people go and look up what their contract actually says, particularly the Force Majeure clause - if there is one.

Force Majeure is a well known phrase that means different things to different people.  In fact some legal commentators state that there is really no such thing as a Force Majeure clause, and that everything could be covered by the doctrine of frustration or other legal principles.

The general idea of Force Majeure is a clause to deal with events that are outside the control of the relevant party, were irresistible (an Act of God) and unforeseeable.  Now that seems easy to understand, until you start delving into it.  The recent floods were irresistible, but were they unforeseeable? If they were now, would they be unforeseeable if they happened in the same places next year?

In standard contracts we may have a Force Majeure clause (or may not) which states what is covered.  Surely the Covid 19 epidemic is the sort of event that is covered?  Well, I was recently comparing standard Force Majeure clauses from standard forms of contract from IChemE and LOGIC.  One explicitly identified pandemic as covered - the other didn't.  Which was which?  And what do your contracts say?  Well this is the point where I suggest you go and have a look for yourself and check.  Hopefully, before it is too late.


Lawyer and legal commentator David Allen Green had a useful analysis on his twitter feed, here.