Butzel attorney Jennifer Dukarski quoted in Forbes article: Tips to Prevent and Avoid Adversarial Supplier Relationships
Kate Vitasek Contributor
With the world still reeling from supply chain shortages and disruption, many organizations are rethinking their supply chain strategies and in particular, how they work with their suppliers.
One example is Stellantis — an automotive conglomerate comprised of several major auto brands, including Chrysler, Dodge, Fiat and others. Stellantis recently dramatically altered its purchase order contract terms and conditions.
The Detroit-based Butzel law firm recently did an analysis that warned suppliers of the impact of Stellantis’ changes. The findings? The new terms, almost without exception, are less favorable to suppliers. For example, the new terms go so far as requiring suppliers to warrant the design, even if they are not design-responsible.
Jennifer Dukarski (a shareholder and leader of Butzel’s Connected and Autonomous Vehicle Specialty Team) shares her perspective: “What Stellantis is trying to do is strong-arm suppliers with staggeringly one-sided language. The new terms provide ample protection for Stellantis but few, if any, (protections) for its suppliers — something that will be immediately obvious to suppliers. This hardline approach will certainly create adversarial negotiations with current and future partners.”
