Ensuring Compliance with
New Legislation through
Strategic Category Management

Client Challenge

• On November 1, 2021, the law (2021:579) prohibiting unfair trading practices (UTP) in the purchase of agricultural and food products came into force, prohibiting unfair trading practices in the commercial relationship between suppliers and buyers.
• As a large actor in the Swedish grocery sector with numerous supplier agreements, the client faced a significant task of review and, if needed, update existing contracts to ensure compliance with upcoming legislation.
• At the same time, the conflict between Russia and Ukraine commenced, making it even more crucial to have updated and clear contract terms to avoid supply chain disruptions and manage rapid price increases.

Assignment

• Gather and review all existing supplier contracts to identify paragraphs that did not comply with the new legislation, in close collaboration with legal department.
• Regulate and negotiate supplier contracts that did not comply with the UTP law.
• Set structure and advise strategic buyers in how to collaborate with their suppliers regarding the new legislation to secure a compliant contract between both parties.
• Standardize all supplier contracts to ensure consistency and gain a more strategic negotiation position with suppliers concerning the urgent price increases.

Client Benefits

• + 100 reviewed supplier contracts to ensure compliance with the new UTP legislation.
• Of the +100 reviewed contracts, +60 supplier contracts were negotiated to ensure compliance with the new UTP legislation.
• A standardized framework for supplier contracts to ensure consistency within agreements.
• Due to clear terms and conditions in contract, the client managed to mitigate and contain the urgent price increases and secured their supply chain.