No Business Is an Island: Securing Growth Strategy Against Supplier Dependence

Intelligent CXO

24 Aug 2021

Alistair Maughan and Gemma Anderson authored an article for Intelligent CXO outlining how a business can protect itself against litigation and commercial risk should third-party technology relationships fail.

“The reality is that it makes sense to make careful use of third parties,” the authors wrote. “But it’s important that the company’s relationship with its suppliers – and the protections offered as part of those agreements – are absolutely watertight. So, for example, you should try to insulate the business from consumer action if they suffer from your downtime caused by a supplier, through advantageous terms or an easy exit route if your supplier fails you. If your service depends on a cloud hosting provider that offers only contract terms with limited service levels and a broad right to suspend its service, you need to make sure that your customer offerings mirror those terms. This will not only protect the business but prove to an investor that the company has covered the risks that can sometimes be outside of its control.”

Read the full article.



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