Competitive success requires companies to be highly efficient in procuring and operating equipment. Procurement plans need to be long term and have an adaptive life cycle costing approach to contract procurement structures. They should also be flexible to take advantage of technological innovation and upgrades.

For companies and governments, the challenge is to manage the efficiencies and cost of the internal systems, while balancing the inbound and outbound supply chains, as well as keeping surprises out of the warehouse facilities.

This paper focuses on the role of equipment procurement contracts in the logistics process and the key issues in negotiating and drafting these contracts. Part 1 of this paper considers the role of equipment procurement contracts in logistics systems. Part 2 sets out the procurement strategy and common delivery structures for equipment procurement contracts. Part 3 examines some of the key commercial and legal considerations in negotiating, drafting and managing these contracts.