SSS · Supplier Contract Architecture

Should we pass the same obligations on to our sub-suppliers verbatim?

Not verbatim, but proportionately: simplified commitments suited to scale and realistic audit rights. Otherwise, the lower tiers of the chain will not sign, or the terms cannot be applied.…

Updated · July 20261 min readCategory · Supplier Contract Architecture
Short answer

Not verbatim, but proportionately: simplified commitments suited to scale and realistic audit rights. Otherwise, the lower tiers of the chain will not sign, or the terms cannot be applied.

Not verbatim, but proportionately: simplified commitments suited to scale and realistic audit rights. Otherwise, the lower tiers of the chain will not sign, or the terms cannot be applied.

The principle is this: towards your own customer you stay answerable for the whole chain, which is why you have to pass at least enough down to cover your own obligation — back-to-back. Anything beyond that cannot be enforced; anything short of it leaves the gap sitting with you. The full set for a critical supplier, a simplified set for a standard one — that is how the balance is struck.

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