The Impact of Major Supply Chain Shocks on Contracts for the Manufacture, Distribution and Sale of Goods

November 2022
Region: Europe

In recent years, a number of major events (whether they be natural disasters affecting major industrialised countries, Brexit, COVID-19, the Russia/Ukraine conflict or the global cost of energy crisis) have all had and, in many instances, continue to have major adverse impacts on the ability of companies to source, manufacture and sell raw materials, components, finished goods and services.

While the initial occurrence of these events is often unexpected, the impact can be long lasting, placing businesses under extreme pressure for a considerable period of time.

This insight considers some of the key contractual issues that businesses (particularly those involved in the manufacture, distribution and sale of products) need to consider as they assess their critical needs, vulnerabilities and protections at this time, as well as examining how to mitigate risks, both under existing contracts and as they develop new contractual arrangements.