Some may caution about leaning on auto-renewal clauses in contracts as crutches. That could be the case if a Buyer is not using them wisely as part of an overall contract management strategy.
Vendors love these clauses (which naturally make them suspect to some Buyers) because they guarantee continuation of income for them.
Smart Buyers love them too because they guarantee that the relationship can continue smoothly if the Buyer's attention is focused on some other commodity at the same time. In fact, these clauses favor Buyers in the long run because they are not under pressure to come to a conclusion or a decision by a "drop-dead" date. Buyers don't have to worry that supply chain will suddenly run dry because there is no contract in place.
The best type is probably month-to-month. That way, the Buyer will continually be reminded of the next approaching deadline by whatever contract management system is in place.
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