"Price escalation clauses and delivery plans as instruments of effective category management"
Academic Research Project at Hochschule Hannover
CTS Maturity Model: Contracts, Terms & Schedule
Industry is faced with new supply situation
Changing general conditions and “spontaneous” disruptions (Corona, Suez Canal, natural events, armed conflicts, etc.) lead to changed supply structures with volatile price fluctuations and delivery bottlenecks. There are two possible instruments to mitigate these effects Negotiation and implementation of the following mechanisms:
- Price Escalation Clauses: Agreement on variable price elements that adapt and compensate for possible price fluctuations.
- Rolling Demand Planning & Scheduling: Agreement on (rolling) quantity planning, e.g. to secure production capacities at the supplier.
Research Questions
- How is the need for these instruments assessed by practice and how does their use differ between practice partners?
- Which causal relationships on the success of the supply relationship can be proven?
- What levels of maturity can be distinguished in practice in forecasting, communication and commitment of delivery plans as well as in structural analysis, contract design and monitoring of variable price elements?
- How can agreements made be maintained automatically in the ERP (or other relevant systems)?
- What recommendations (best practices) can be derived for an optimized design of processes, systems and contracts?
CTS Maturity Model: Contracts, Terms & Schedule
"Price escalation clauses and delivery plans as instruments of effective category management"
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Hochschule Hannover
Prof. Dr. Thomas Andressen
Fakutltät IV - Business Administration and Informatics
Ricklinger Stadtweg 120
30459 Hannover
Mobile: +49 152 56737470
E-mail: contact@thomas-andressen.de
Corporate Research Partners:
Thank you to our Corporate Research Partners for supporting this project:
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