Reviewing a supplier relationship before renewal
What should a supplier review cover before renewal?
Check whether the supplied outputs still fit, whether dependencies or capacity needs have changed and which issues remain unresolved. Read the actual renewal terms and confirm who can approve the next agreement.
A renewal date is a useful prompt to review whether a supplier relationship still fits the business. It should not be the first time someone notices an unresolved issue or a changed requirement.
Start with the current need
Compare the original requirement with what the business needs now. A supplier may be performing as agreed while the requirement itself has changed.
Review the relevant records: deliveries, open issues, approved changes and support arrangements. Use observable examples rather than a general impression that the relationship is “good” or “poor”.
Questions for a renewal review
- Are the supplied outputs still the right ones?
- Have dependencies or capacity needs changed?
- What issues remain unresolved?
- What do the actual renewal terms require?
- Who has authority to approve the next agreement?
Leave time for a considered decision
Record notice dates and other contractual deadlines accurately. Get appropriate advice if the terms are unclear. An internal review date does not change the agreement's requirements.
Discuss practical improvements with the supplier before assuming a replacement is necessary. Conversely, familiarity should not prevent a fair assessment of alternatives where that is appropriate.
Keep the review decision and supporting reasons with the relevant agreement version. Identify any actions that must happen before renewal, such as clarifying support arrangements or confirming a revised scope.
The review should end with a clear status: ready to renew through the authorised process, awaiting information, or considering another option. That gives the relationship an intentional next stage.
General business-process information. Check the circumstances and seek appropriate professional advice for contractual, legal or specialist decisions.
Further reading
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