What can be a consequence of not reviewing supplier terms and conditions?

The potential for misunderstandings or disputes arises when supplier terms and conditions are not adequately reviewed. This situation can lead to confusion over obligations, rights, and expectations under the contract. Without a thorough review, key details—such as delivery schedules, payment terms, liability clauses, and quality standards—may be overlooked or misinterpreted. This lack of clarity can create scenarios where one party feels aggrieved, leading to disputes that could have been avoided had the terms been properly understood and negotiated.

When contracts are not reviewed, the risk of entering into agreements that do not align with the buyer’s needs or that impose unfavorable conditions becomes significant. This can result in operational issues, financial losses, or damaged relationships, ultimately affecting the buyer’s ability to manage operations effectively and uphold contractual commitments.