The contract renewed itself. Nobody chose to keep it.

Most supplier spend is not decided at signature or at renewal: it is decided by a date in a clause that nobody has read since.

By Steve 5 min read
Abstract bridge artwork for The contract renewed itself. Nobody chose to keep it.

There is a category of spending in almost every business that has never actually been approved. It was approved once, at signature, under conditions that no longer apply: a headcount, a volume, a market price, a strategy. Since then it has continued because continuing is the default and nobody was asked. Auto-renewal is not a scandal. It is a sensible commercial device: it lowers the cost of maintaining a relationship both sides want. The problem is narrower and more mechanical than “suppliers are taking advantage.” An evergreen clause converts a…

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