Loading...
 
 

A New Approach to Contracts

Published: 12 Nov 2019 Average Rating: unrated Print
 

Author: David Frydlinger, Oliver Hart, Kate Vitasek

When Dell originally selected FedEx, in 2005, to handle all aspects of its hardware return-and-repair process, the companies drew up a traditional supplier contract. The 100-page-plus document was filled with 'supplier shall' statements that detailed FedEx's obligations and outlined dozens of metrics for how Dell would measure success. For nearly a decade, FedEx met all its contractual obligations-but neither party was happy in the relationship. Dell felt that FedEx was not proactive in driving continuous improvement and innovative solutions; FedEx was frustrated by onerous requirements that wasted resources and forced it to operate within a restrictive statement of work. Dell's attempts to lower costs, including bidding out the work three times during the eight-year relationship, ate into FedEx's profits.

 

This content is only available to members.

Register Now   Sign In
 

Related Discussions

Please sign in or register to post on this forum

Pretorius Consulting
2019-09-18 17:50:21

Pricing Article Changes

Does anyone actually price changes to the Articles of the contract? For example, changing the venue for arbitration (5% of the contract value) or the change order pro...
 
 
 
Replies: 2
Anonymous
2018-10-12 14:32:00

COLLABORATION AND TEAM ROLES

A great article. Roles and responsibilities are often overlooked. We instead, as a buying organisation, like to define how something should be delivered.
 
 
 
 
Replies: 3

Alstom
2016-12-01 06:07:29

Evaluating Warranty extension cost

In an EPC project, the project is delayed by employer and employer requests contractor to extend warranty. Employer agrees to provide a claim/ amendment for warranty e...
 
 
 
 
 
Replies: 4

Legal Aid Agency / Ministry of Justice
2016-06-18 10:14:08

Contract management - highest growth inducties & areas?

Hi I've just viewed the 'untangling complex projects' webinar which refers to a significant increase in contract management roles globally. Which industries and geogra...
 
 
 
Replies: 2
Anonymous
2015-03-25 09:02:50

Work Order and Change Order

We have a SOW and spend defined over 2 years, as defined in contract we raise Work Order for specific work. If somebody can help why do we need Work Oder, why cant we ...
 
 
 
 
 
 
 
 
Replies: 7
Anonymous
2019-07-28 06:49:22

Jurisdiction

For Agreement between the Parties of differnet origin , the aurgument starts up on Jurisdiction and governing law for the AGreement. while both the Parties are interes...
 
 
 
 
Older entries »
Replies: 3