Supply Contracts in Supply Chain Management

Name: Supply Contracts in Supply Chain Management
Rating: 4.4 (29 reviews)

Learn Contracts in Supply Chain With Examples

Created byEdcorner Learning

Last updated 5/2024

English

English [Auto],

What you'll learn

Supply contracts
Attributes of contracts
Contract elements
Cost risk and estimates
Technical risk and contract schedule risk
Example of contracts
Type of contracts
Fixed price and cost price contracts
Incentive arrangements
Sharing arrangements
Cost plus incentive fee

Course content

3 sections • 19 lectures • 1h 35m total length

Introduction to supply contacts5:12
Define supply contracts as the building block of supplier relationships, governing supplier and buyer ties through terms and conditions, dispute resolution, and mutual benefits for smooth transactions.
Attributes of contracts4:16
Define contract attributes established by legal counsel, with tailored clauses for product, service, and supplier types, ensuring clear terminology, mutual benefits, and boilerplate terms for strong negotiation.
Contract Structure4:01
Explore how contract structure begins with an introduction, then clauses supported by schedules that define methods, metrics, and deliverables for supply and delivery, pricing, and other terms.
Contract Elements12:10
Identify contract elements for supply contracts: scope, purchase orders, shipment, delivery, installation, acceptance, quality, warranties, and payments. Include force majeure, confidentiality, IP, and dispute resolution.
Contractual Disputes & Arbitations3:54
Learn how to resolve contractual disputes in supply chain management through mediation and arbitration, with clear clauses, a third-party arbitrator, and international considerations such as governing law and language.

Intro to Types of Supply Contracts4:06
Explore how contract types shape supplier-buyer relationships, with Boeing’s outsourcing of the Dreamliner illustrating design elements, cost estimates, subcontracting, and language challenges resolved through proper contracts.
Supply contracts categories2:24
Explore the categories of supply contracts and compare fixed price versus cost-based pricing, highlighting how pricing mechanisms drive contract formation in complex projects.
Fixed Price Contracts & Cost Based Contracts4:34
Define fixed price contracts and cost based contracts, where a fixed price is agreed upfront for delivery, and costs are covered plus a fixed fee in cost based agreements.
Cost risks and estimates3:01
Explore cost risks and estimates in forward price sourcing contracts within supply chain management, including cost overshoot and schedule risk, with compensation clauses tied to handover delays and supplier effort.
Technical Risk & Contract Schedule Risk2:34
Explore technical risk and contract schedule risk in supplier contracts, addressing pricing uncertainty for new technologies and subscriptions, and using forward pricing to anticipate material and labor cost increases.
Examples - Firm Fixed Price (FFP) Contracts with Low Uncertainty3:55
Explore firm fixed price contracts versus cost-based contracts, and how low uncertainty shapes supplier pricing, risk allocation, and fixed price outcomes.
Examples - Firm Fixed Price (FFP) Contracts with High Uncertainty3:40
Explore firm fixed price contracts under high uncertainty, where buyers cover costly outcomes by fixing a price using base cost plus a 15% markup, shaping supplier profit ranges.
Examples - Cost based Contracts with High Uncertainty3:19
Explain cost-based contracts that cover costs plus a fixed fee under high uncertainty and show how a 100 target cost with 5% adds to 105, with 5000 profit concerns.
Examples - Cost based Contracts with High Uncertainty PART 25:00
Explore cost-based contracts with fixed percent off actual cost, analyzing buyer and supplier risk under cost versus fixed price models, and explain incentive contracts as a middle ground.
Firm Fixed price contracts4:08
Assess when fixed price contracts fit standardized products with frozen specs and low price fluctuation, and when cost type contracts suit complex projects; note price escalator clauses and redetermination options.
Cost plus fixed fee arrangements (CPFF)7:57
Examine cost type arrangements, including cost plus fixed fee (CPFF), cost plus award fee, and cost sharing, with applications in complex hardware and professional services.

Types of incentive arrangements3:16
Explore incentive-based contracts that share risk and motivate supplier performance, focusing on fixed price incentive and cost plus incentive fee contracts, with target cost, target profit, and sharing arrangements.
Fixed price incentive (FPI) fee arrangements with calculations10:03
Explore fixed price incentive (fpi) fee arrangements with calculations that set target cost and target profit, establish sharing arrangements, and explain ceiling prices when costs vary above or below target.
Cost plus incentive fee arrangements (CPIF) with calculations8:19
Explain cost plus incentive fee (CPIF) contracts, detailing target cost and profit, fixed fee, and the 75/25 sharing above target with minimum and maximum fees.

Requirements

Eager to learn supply chain concepts

Description

This comprehensive course explores the critical role of supply contracts within supply chain management. Designed for professionals and students interested in deepening their understanding of contractual agreements, this course covers everything from the basics of contract formation to the complexities of managing risks and resolving disputes.

Course Objectives:

Understand the foundational elements of supply contracts, including their attributes, structure, and essential elements.
Learn about different types of supply contracts and their applications within various contexts of supply chain management.
Analyze contract risks associated with cost and technical aspects of supply chain projects.
Examine real-world examples of firm fixed price and cost-based contracts under varying degrees of uncertainty.
Explore detailed incentive arrangements and their calculations to align contractor performance with project goals.

Target Audience: This course is ideal for supply chain professionals, contract managers, procurement specialists, and anyone involved in the formulation and management of contracts within the supply chain. Any Student who wants to learn supply chain concepts or want to enter this exciting field can also join the course.

Learning Outcomes: Participants will gain a robust understanding of how contracts are designed, negotiated, and managed. They will be equipped with the skills to mitigate risks, handle disputes effectively, and use contracts to achieve strategic supply chain objectives.

Who this course is for:

Supply chain Professionals
Anyone who wants to learn supply chain concepts.

Supply Contracts in Supply Chain Management

What you'll learn

Explore related topics

Course content

Introduction to Supply Contracts5 lectures • 30min

Types of contracts with examples and calculation11 lectures • 45min

Incentive Arrangements with examples and calculation3 lectures • 22min

Requirements

Description

Who this course is for: