Publication date: 29.09.2025
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Legal Case: Evaluating Supplier Performance and Managing Contractual Risks
Case Overview
Graphic Packaging International (GPI) aimed to implement an effective system for monitoring and standardizing the performance of its suppliers, minimizing business risks, and ensuring that contract terms comply with corporate standards. To achieve this, a Vendor Performance Survey was developed, serving as a key tool for monitoring service quality and alignment with the company’s priorities.
The legal aspects of this case include:
Defining supplier rights and obligations.
Ensuring contract compliance with corporate law.
Risk analysis in contract execution.
Protection of intellectual property and confidential information.
Ensuring compliance with GDPR and other privacy standards.
Key Legal Aspects
Quality Control of Supplier Expertise
- Objective: Ensure high-quality consulting and expert services.
Key survey questions:
- The vendor demonstrates new products and services that contribute to business growth.
- Rating the value of the advisory team (scale: very poor – excellent).
- Suggestions for future improvements and innovations.
- Legal significance: The survey formalizes expectations from the supplier and documents the evaluation results, simplifying potential dispute resolution.
- Alignment with Company Priorities
- Objective: Ensure that supplier services align with GPI’s strategic objectives.
- Supplier services correspond to the company’s business priorities.
- The supplier provides the necessary support to achieve business goals.
- The supplier enables success and supports the company’s vision.
- Identification of additional resources or support needed to realize strategic goals.
- Legal value: Formalizing KPIs within contracts reduces the risk of non-performance.
- Relationship and Communication
- Objective: Ensure effective interaction between the company and the supplier.
- Flexibility: Account teams demonstrate flexibility when needed.
- Responsiveness: Timely delivery of updates to address known or new issues.
- Communication: Professional, approachable, and clear communication.
- Escalation hierarchy: Clearly defined and communicated escalation structure to all stakeholders.
- Legal aspect: Proper documentation of communications reduces the risk of claims and provides evidence for arbitration or court proceedings.
- Supplier Value Assessment
- Objective: Evaluate innovation, stability, and resource alignment with GPI’s needs.
- Innovation: Demonstration of new products and services.
- Cost Optimization: Proactive proposals for cost savings.
- Stability: Market and internal stability of the supplier.
- Alignment: Supplier resources understand GPI business processes.
- Legal conclusion: Including these criteria in contracts prevents misunderstandings, protects corporate interests, and ensures economic efficiency.
Frequently Asked Questions
Question
Can a supplier be evaluated without a documented survey?
Answer
No. Using a standardized survey provides a legal basis for performance analysis and risk management.
Question
What are the legal consequences if a supplier fails to meet GPI standards?
Answer
This can lead to contract review, application of penalties, or termination under the contractual terms.
Question
How is intellectual property protected during supplier evaluation?
Asnwer
NDA provisions should be included at all stages, and the use of confidential information must be monitored.
Question
How does the survey ensure GDPR and other privacy compliance?
Answer
The survey documents the supplier’s level of data control, legally substantiating compliance with regulations.
The implementation of the Vendor Performance Survey at GPI has proven to be an effective legal instrument for:
Standardizing supplier evaluation.
Controlling contract execution risks.
Ensuring compliance with corporate and legal requirements.
Protecting intellectual property and confidential information.
Enhancing transparency and efficiency in supplier communications.
