Supplier Termination and Exit Plans

Insurers will periodically terminate Contracts / Service Agreements and relationships with suppliers, either because of a Procurement / Strategic Sourcing decision to migrate to a new preferred supplier or, more rarely, an early termination due to supplier under performance.

Whereas all well written Supply Chain Contracts / Service Agreements should have robust clauses within the Terms and Conditions, to cater for Termination and Termination Assistance, effectively enforcing those clauses presents a challenge to the Supply Chain Manager. Whilst subject to a termination scenario, the supplier often reduces its commitment to servicing the account as – in comparison to other client accounts – the level of prestige and importance attached to the one in run off is diminished.

Against the backdrop a structured project plan, Shorten Management Consulting Limited can be engaged to assume ownership of the supplier relationship throughout the termination and run off timeline. The objectives would be to

  • Maintain service delivery,
  • Drive an early closure of all run off work,
  • Ensure the ongoing provision of Management Information,
  • Maintain the relationship under difficult circumstances,
  • Minimise risk and exposure for the insurer.


Find out how we can assist you with Supplier Termination and Exit Plans by getting in touch with us here>


Copyright © Shorten Management Consulting Ltd

Reg No. 6565621

VAT No. 941 132457