What is a potential risk at the end of the contract transition to a new supplier?

A significant potential risk at the end of the contract transition to a new supplier involves the supplier's reluctance to cooperate. This can stem from various factors, including organizational culture differences, a lack of trust, or lingering issues from the previous contract. If the new supplier feels pressured or unfairly treated during the transition, they may be less willing to collaborate effectively, which can hinder the transition process and affect the overall relationship moving forward.

The success of a new supplier's onboarding is heavily dependent on a cooperative spirit and the willingness to engage in open communication. If there is reluctance on their part, it can lead to misunderstandings, resistance to adopting new processes, or failure to meet the agreed-upon terms, ultimately impacting the project's success and the relationship between both parties.

While factors such as increased costs, delayed installation of new supplies, and loss of controlling interests can also pose risks in a contract transition, the cooperation of the new supplier is more critical as it influences how these other risks are managed. A lack of cooperation can exacerbate other challenges, making it the most pressing concern during this transitional phase.