How we end cooperation with suppliers carefully and responsibly, with an eye for the consequences on the ground.
Kessels B.V. strives for a careful, transparent and responsible termination of cooperation with suppliers. This procedure has been drawn up to ensure that ending a business relationship proceeds in a structured and safe manner, with particular attention to possible social, economic and cultural consequences in the countries where suppliers operate.
In addition, this approach safeguards business continuity, compliance with contractual and legal obligations and respectful treatment of all parties involved throughout the transition process.
This policy applies to all suppliers of goods, services and consultancy with which Kessels B.V. has an existing or former contractual relationship. Extra attention is paid to suppliers located in areas where there may be heightened social, economic or labour-related risks.
For every termination of a supplier relationship, Kessels B.V. applies the following principles:
Termination
A termination of the cooperation may take place due to the expiry of a contract, insufficient performance, strategic business decisions or a mutually agreed termination. Where a supplier operates in a region with heightened social or economic vulnerability, an assessment of the possible consequences for workers and local communities is carried out in advance. The outcomes of this assessment are taken into account in further decision-making and in planning the termination.
Contractual
Before the cooperation is formally terminated, a check is carried out on all relevant contractual and legal obligations. This includes verification of the applicable notice periods, assessment of exit provisions and termination conditions, and a check of any financial obligations and outstanding agreements.
Internal communication
Relevant internal stakeholders are informed throughout the process. Possible risks to business continuity are mapped. Any social consequences of the termination are documented and assessed.
External communication
Kessels B.V. communicates the termination in a clear and professional manner. The supplier receives formal written notification. Where the supplier or its workers are in a vulnerable position, a reasonable notice period is applied. Where possible, a constructive dialogue is held to limit negative effects of the termination.
Practical conclusion
All operational activities arising from the cooperation are carefully concluded. Materials, documents, systems and company property are returned or transferred in accordance with the agreements made. With production partners, a phased reduction of orders is used where feasible, in order to limit the impact on employment as much as possible.
Financial settlement
Kessels B.V. ensures a correct and timely financial settlement. Outstanding invoices are processed in accordance with the agreed payment terms. Unnecessary financial measures that could disproportionately disadvantage suppliers or their workers are avoided.
After the off-boarding process has been completed, an evaluation takes place. The termination is assessed on both operational and social aspects. Lessons learned are used in future supplier selections, risk assessments and contract negotiations. Where possible, feedback is exchanged with the supplier to support mutual learning and further development.