Knowledge Base

Ask the Collective

The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.

People & Suppliers3 discussions

How should we collectively track and share supplier performance data and pricing across the community?

Members recommend a shared, editable approach to capturing haulage and supplier information. The suggested method is: - **Shared Google Drive or spreadsheet** — Members proposed using a collective editable spreadsheet (hosted on Google Drive or similar) where all members can contribute and update supplier rate and service quality information in real time. This allows the community to build a living database of supplier performance without duplication of research. The approach prioritises accessibility and collaborative editing so that learnings about pricing, reliability, and service quality can be pooled and kept current as member experiences evolve.

#supplier-management#shared-knowledge#tools-systems
People & Suppliers2 discussions

What are the risks of auto-renewal clauses in commercial supplier contracts and how should they be managed?

Auto-renewal clauses in supplier contracts pose a significant financial and legal risk if not carefully managed. Members have experienced situations where suppliers have enforced auto-renewals on unfavourable terms (sometimes for periods much longer than the original contract), then threatened legal action when the auto-renewed terms were refused. **Key risks and management strategies:** - **PHS Group case study** — One member signed a 2-year contract that included an auto-renewal clause, which the supplier invoked for a further 3 years without explicit agreement. The supplier then threatened legal action for breach when the renewal was refused. This illustrates how auto-renewals can lock you into extended commitments with escalating costs and unfavourable terms. - **Sneaky clauses** — Members warn that some suppliers embed auto-renewal language deep in contracts in ways that are easy to miss during initial review. Always scrutinise the full contract terms, not just headline items. - **Prevention approach** — Be "super careful with what you sign now"; review all renewal clauses before signing and ensure they match your business needs. If auto-renewal is unavoidable, confirm explicit opt-out deadlines and procedures in writing. - **Response to threats** — If a supplier threatens legal action over a disputed auto-renewal, internal escalation to your legal department (even as a holding response) is effective and removes the emotional element from the negotiation. **Key caveat:** Auto-renewal disputes can escalate to legal threats quickly. Having a clear contract review process and documented opt-out communications are your best protection.

#contracts#supplier-management#legal-risk#auto-renewal