|
|
Article: OEMs placing punitive terms into outsourcing contracts.
- Article from:
- Purchasing
- Article date:
- October 15, 2009
- Author:
CopyrightCOPYRIGHT 2009 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
By James Carbone
The electronics industry downturn has fueled interest in OEMs placing "punishment terms" in contracts with their electronics manufacturing services providers.
"Some of these things are pretty draconian," says Charles Barnhart, co-founder of the electronics outsourcing consulting firm Charlie Barnhart and Associates in Maui, Hawaii.
"I call them punishment terms. They want to fine their contractors if some things don't happen" such as if a delivery is late or even if an e-mail is not promptly answered, he says.
Barnhart says some OEMs are also pushing their EMS providers to agree to general product liability and ...