What are the hidden risks in your supply contracts?

Over 70% of supply contracts in LATAM contain clauses with legal, financial, or compliance risk (Source: EY 2023).

In 2025, more than 38% of Supply Chain disruptions are related to poorly structured clauses or contractual ambiguities.

In Procurement, what you don’t see can cost you millions. And poorly structured contracts are a minefield of time, litigation, and penalties. Reviewing them “when something goes wrong” is no longer an option.

Below is a CHECKLIST OF HIDDEN RISKS (detectable in a contract audit):

• Poorly defined exclusivity clauses = loss of negotiation power.

• Delivery times without clear penalties = bottlenecks without consequences.

• Pricing structures without inflation or FX adjustment = unexpected cost overruns.

• No SLAs (Service Level Agreements) = difficult to enforce minimum service levels.

• Ambiguous or generic jurisdiction = legal challenges in international arbitration.

Also, 4 critical points you must review:

1. Clear definition of force majeure in a post-pandemic context.

2. ESG compliance obligations.

3. Delivery times and penalties.

4. Price indexation vs. inflation.

Tip: Review your contracts at least every 6 months with Procurement and Legal.

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