When entering into contracts between customer and transport provider it is important to note what the purpose is with the agreement or contract.
An agreement is, to make sure that you are in agreement of the conditions for an agreement, but also that you give a handshake on a cooperation, that stretches over an agreed period. However, the agreement must be beneficial for both parties.
As we experience a rising tendency, that companies lock themselves more than necessary through the signed contracts, we therefore choose to put focus on contracts with exclusivity, which not necessarily ensures a mutual benefit.
Consequenses
By concluding an agreement with exclusivity, it is primarily the transport provider who secures his company against a customer contracting with another provider to do a similar transport.
At the same time a transport provider will rarely commit to not contracting with a competitior to the transport purchasing company, as the provider would limit the business options, unless a very comprehensive and dedicated solution is required.
The consequences when contracting with exclusivity can in certain situations cause that changes is impossible during the contracting periode, as you are locked by the contract. This causes both parties to attain a less desireable evaluation once the contract ends.
If it is absolutely necessary with exclusivity, it is recommended that you agree on a mutual termination clause which can be exercised if necessary, to redefine the agreement.
Being aware
Basically a contract should ensure, that two parties are on commen ground, and the agreed contents are correctly stated.
We always recommend that you enter a long lasting agreement to secure mutual desire to develop a good partnership. However one should by eventual exclusivity consider which parameters could terminate the contract and a earlier termination.
As a contract has the purpose to outline the agreed terms between two companies, we recommend that you prepare a manual ( SOP ) which documents the expected daily cooperation. This document is changeable and is updated when needed.
Let us secure your transport agreements.
We offer advice and guidance in entering contracts and frame agreements between transport purchasing company and the transport provider, and we are ready to ensure, you get the optimal transport agreement.
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