5 min read
Can We Use Our Own Contract Instead of IMPACK's Contract?
Written by: Maxime Jacques, 9 November 2021
If you’re considering working with IMPACK, and you’re a large-sized company, you are probably wondering whether you can use your own contract instead of IMPACK’s contract.
Because we work with small companies, medium-sized companies, and some of the biggest names in the packaging industry, we get asked this question all the time.
As an Area Sales Manager and an IMPACK Expert for over 8 years, I have been asked this question more times than my fingers can count.
And I get it: Big companies want to simplify their buying process with all their suppliers and ensure that all they meet their standards.
This helps them protect themselves and preserve their interests.
In this article, I will talk about whether it is possible for your company to use your own contract, what using your own contract involves, and the pros and cons of using your contract.
And I promise, I will keep this simple and straightforward.
Can We Use Our Own Contract Instead of IMPACK’s Contract?
The short answer is yes, you can use your own contract.
At IMPACK, our top priority is mutual trust: Our goal is to establish flexible and transparent long-term relationships with our clients.
Therefore, we never impose on our clients to use our contract.
That said, using your own contract has its own set of considerations, advantages, and disadvantages that you should be aware of.
I will cover everything you need to know about using your contract so that you’re fully equipped with all the information you need to make the best decision for your company!
What Does Using Your Own Contract Involve?
If your company prefers to use your own contract, you should know that this involves 3 additional steps to IMPACK’s standard purchasing process:
1. Reviewing the Contract
Given that your contract was drafted by a lawyer, an attorney, or a legal entity, legal jargon is not always easy to understand.
Therefore, we would have to review the entire contract and consult our lawyers for the most delicate sections of the contract.
At IMPACK, we do not have an in-house legal department, and hence, we would have to consult external lawyers to review your contract and contact our insurance advisors to review the sections of the contract that are pertinent to insurance.
This takes time and will extend your purchasing process, your machine’s delivery time, the commissioning of your machine, and the operator training which altogether extends the time it takes for your company to get its return from investing in a packing system.
2. Discussing and Negotiating the Contract
After our lawyers and insurance advisors have reviewed your contract and offered their recommendations, we would get back to you with a list of points to discuss and negotiate.
Some sections of the contract would be quick and easy to agree on, while with other sections, you may want to consult your legal department before coming back to us with a counter-proposal.
3. Arriving at an Agreement
After we have reviewed your contract, discussed and negotiated the contract with you, and went through counter-proposals, the next step would be to arrive at a mutual agreement.
But these 3 steps take time. Sometimes, a lot of time.
From my experience in the last 8 years, I can confidently say that it would take at least 2 to 3 months to complete those 3 steps.
And, in some cases, it can take 6 months or more.
Thus, using your own contract involves 3 extra steps that can account for at least 2 to 3 months of additional time over IMPACK’s standard purchasing process.
And this is an important thing for you to consider.
Using Your Contract Versus IMPACK’s Contract — Pros & Cons
To help you make a more informed decision, here are the pros and cons of using your contract versus using IMPACK’s contract:
Pros of Using Your Contract
It allows you to standardize the purchasing terms and conditions at a group level.
It ensures that you have all the necessary clauses to protect your interests.
It allows you to standardize your buying process with all suppliers.
Cons of Using Your Contract
It involves 3 extra steps that add 2 to 6 months to your purchasing process.
It delays the delivery of your machine, the commissioning of your machine, the operator training, and the time it takes for your company to get its return from investing in a packing system.
It requires adjustments and modifications from both parties, as well as, counter-proposals until arriving at a mutual agreement.
It adds complexity to the process and is time-consuming.
Pros of Using IMPACK’s Contract
You go through a super standardized process with a set and guaranteed estimated delivery time, a smooth commissioning process, and well-structured operator training. Nothing is ambiguous.
Easier and faster purchasing process: You save a lot of time and money.
You are not committed to a rigid contract: Although being standardized, IMPACK’s contract is not strict or fixed, we are open to adjusting sections of the contract and(or) adding sections from your contract to fit with your desired standards that will allow you to preserve your interests.
Most of our clients use IMPACK’s contract, why not you?
Cons of Using IMPACK’s Contract
It does not include every section of your contract that you’ve always used.
It will require you to review the contract to ensure it meets your standards (but if not you can request modifications to IMPACK’s contract).
Should We Use Our Contract or IMPACK’s Contract?
So, should you go for your own contract or use IMPACK’s standard contract?
Here is the answer you’ve been waiting for in less than 60 seconds ⏱️:
At IMPACK, we never impose on our clients to use our contract. You can use your own contract but there are some considerations and important implications that you should be aware of.
Using your own contract would involve 3 extra steps that add 2 to 6 months to the standard purchasing process which delays the delivery of your machine, the commissioning process, the operator training, and the time it takes for your company to get its return from investing in a packing system.
Time is often critical in a project. If you don’t want to delay the delivery of your machine, the commissioning process, the operator training, and the time it takes for your company to get its return from investing in a packing system, here’s what we’d recommend:
👉 Review IMPACK’s contract. It is not a rigid contract. We are flexible and willing to amend sections of the contract to meet your standards and preserve your interests. In IMPACK’s 20 year history, our clients never had a problem with it.
👉 If you make a down payment on the project, we can waive the time needed to set up the contract and that would guarantee you an immediate production slot. This means you would directly have a present lead time and an estimated delivery time.
👉 At IMPACK, we value open communication and transparency so we’re open to suggestions and willing to do whatever it takes to make life easier for both of us!
If you’re ready to move forward with your contract, contact your IMPACK Area Sales Manager. This will allow you to get your process started and save as much time as possible!
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