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World Bank report a concern for many supply contracts

These days, supply contracts include price escalation mechanisms to better manage risk between the supplier and the business.   Just the name of these mechanisms indicates that they are often geared to only increase. This hasn’t been a problem in a booming economy but as the latest Commodity Markets Outlook report by the World Bank illustrates, prices are likely to come off instead of increase. This is bad news for poorly constructed supply contracts. Read more