Negotiating Third-Party Logistics Provider Agreements: Approaches to Supply Chain Management

Description

In the wake of the COVID-19 outbreak, the supply chain and its requisite performance pieces have come to the forefront. This has resulted in increased focus on the role of third-party logistics (3PL) providers in the supply chain. These providers perform critical supply-chain management functions, including transportation and warehousing solutions and addressing state, federal, and international laws and treaties. Through 3PL agreements, a company and 3PL providers can structure customized logistics solutions to meet the company's specific needs.

3PL agreements are often very complex, which highlights the need for a sophisticated drafter that can customize the agreement while tackling the cross-disciplinary nature of the various stages of the supply chain. Counsel representing buyers of 3PL services and providers must have a thorough knowledge of the risks and liabilities involved to negotiate the most favorable terms for the client while avoiding pitfalls such as double payment for services. Counsel also must account for risks and supply-chain stress related to COVID-19 and restrictions in certain countries on imports.

Listen as our authoritative panel of attorneys discusses best practices for negotiating and drafting 3PL provider contracts. The panel will explain how to avoid common contracting pitfalls when negotiating agreements and address critical provisions in 3PL contracts, including the scope of services, performance measurement, rate structure, liability and indemnity, damages, termination, and more.