Re-Thinking Supply Chain Contracts in the World of Connected Things

As more and more “smart” products incorporate computer and software elements, manufacturers must evaluate whether they have the appropriate supply chain practices and procedures in place to handle the addition of these elements, advises Nicholas J. Ellis of Foley & Lardner in the firm’s Manufacturing Industry Advisor blog.

This could involve revising contracting practices and documents, he writes.

“Many of the contract forms used to source raw materials or physical components may not be appropriate to use when sourcing software. The terms of any contract must be dictated by the specific circumstances,” Ellis explains.

He discusses some examples that highlight some of the potential issues that may arise when trying to use traditional supply form documents to purchase software or other computer components to be included in a product.

Read the article.