Managing Legal and Business Risk in the Supply Chain

This opening module provides an overview on how supply chains were operating pre‑pandemic and the current issues facing supply chain management today. You will be given a framework to understand the legal issues throughout the supply chain process involving trade, logistics, supplier management, sustainability and more. 

The case study exercise, led by Program Director Martha Harrison, will be introduced with tools to create your own issue spotting checklist. Module 1 will conclude with an engaging panel discussion on the impact of the COVID‑19 pandemic on supply chain management from varying industry perspectives, to answer the question “why is everyone talking about supply chains?”.

• Supply chain operations in Canada pre‑pandemic and an overview of supply chain management today, including the legislative impact on Canadian companies and suppliers, industries most affected and greater focus on sustainable supply chains
• The legal issues in supply chain management
• The difference in vulnerability based on your position in the supply chain
• Dealing with internal vs. external stakeholders
• How supply chain management differs at the individual country level, regional trading level and international level

This module begins with understanding the trade agreements and customs that affect Canada and Canadian businesses. You will then take a closer look at non‑tariff barriers, sanctions and export controls, focusing on risk mitigation practices in international trade. Consideration of how U.S. law and jurisdictional issues impact Canadian business will also be discussed.

• Canadian trade agreements at the regional and global level
• Strategies for customs compliance
• What are non‑tariff barriers and how are they implemented at law?
• Sanctions and export controls: regulatory standards
• International trade risk mitigation practices
• U.S. law and jurisdictional issues: the impact on Canadian business

With a focus on supply chain logistics and supplier management, you will learn need‑to‑know shipping terms and explore strategies for sourcing and managing suppliers to reduce risk. Using the sample case study, supplier issues, including competition/anti‑trust and supplier bankruptcy, will also be addressed and analyzed.

• Understanding common shipping terms and when the risk transfers
• Risk considerations when managing suppliers, including availability of supply, trade agreement advantages, diversification and export regulations/sanctions
• The use of insurance in supply chain management
• The important interaction between the legal team, logistics and export control
• Financing options for cross‑border purchase of goods
• Competition and anti‑trust issues with suppliers
• Dealing with supplier bankruptcy

Starting with the changing labour laws in Canada and import prohibitions related to forced labour, sanctions and ethical considerations, you will explore corporate responsibility in supply chains and discuss governance decisions related to environmental compliance and diversity.

This module will conclude with an interactive workshop highlighting ESG in practice, using real‑world examples to showcase how to successfully implement sustainability goals into your supply chain processes.

• Canada’s changing labour laws: Bill S‑211
• Understanding how supply chain governance decisions affect brand/reputation and what boards should be thinking about
• Environmental compliance concerns, including carbon intensity adjustments and government disclosure requirements on materials, chemicals, etc.
• Governance strategies for diversity in supply chain networks and the impact on profitability and return on investment
• Supplier diversity programs: what are they and how to create and implement an effective program

This concluding module will provide you with a thorough understanding of how to structure your supply chain purchase and sale agreement to incorporate the lessons in trade, logistics, supplier management and sustainability that you have learned in Modules 1‑4. 

The program will conclude with a wrap‑up of the issue spotting case study exercise to ensure you leave with a practical, ready‑to‑use checklist for your next cross‑border purchase transaction.

Focusing on the key agreement terms to negotiate to reduce your risk and the practical strategies to employ when your supplier doesn’t deliver as planned, topics include: 

• How to structure your purchase and sale agreement, including jurisdiction considerations, term, supplier exclusivity rights, risk of loss and threshold for “failures”
• Supply chain warranties
• Excuses for non‑performance: force majeure, commercial impracticability, and frustration
• Remedies for breach of contract
• International arbitration and dispute resolution