Management of procurement and purchasing has become increasingly strategic for companies in recent years due in large part to developments in technology and traceability.
The COVID-19 pandemic has brought a new level of complexity to these issues, however, as supply chain disruptions have created significant operational challenges for global organizations. Companies with geographically-dispersed and multi-tiered supply chains are among the most affected by the current outbreak, facing issues relating to payment or delivery failures, price gouging, supplier solvency and potential disputes.
This memorandum presents certain legal and compliance considerations with respect to supply chains that multinationals may be facing at the moment, including with respect to day-to-day operations, corporate governance and liability management as well as an overview of the evolving legal and regulatory framework applicable to supply chain due diligence.