Long-term distribution client
Contract background
Client X4 signed a two-year refrigerated distribution contract in September 2024, serving 12 sites. Ahead of renewal, the service review found that actual delivery volume had grown 30% beyond the original capacity assumptions.
Review before expiry
- 1 July 2026: the contract review calendar flagged renewal around 60 days ahead of the September expiry.
- 6 July: reviewed service levels and identified the increase in actual volume.
- 14 July: presented a renewal proposal reflecting current volumes, updated pricing and expanded refrigerated vehicle allocation.
- 2 August: agreed terms and signed the renewal, effective from the previous contract’s expiry without a service gap.
Results
Renewal was completed six weeks before expiry, with no disruption to any of the 12 delivery sites. Updated terms and allocated capacity now reflected the actual service volume.
Lesson learned
Volume growth can outpace contract assumptions before renewal. A mid-term service-level review is recommended when demand grows materially, alongside the annual review ahead of renewal. The practice falls under Reporting and Verification and contract review in the Client Relationship and Service Management Policy. The X4 identifier protects the client’s privacy.
Results
Renewal completed 6 weeks before expiry Zero disruption across 12 delivery sites Capacity and terms aligned with 30% volume growth