No doubt your company’s radar is particularly honed now to be sure you spot even the earliest warning sign a valuable customer is in trouble. But what about your key suppliers?
More than two-thirds (67%) of execs told Ernst & Young (E&Y) they’d experience adverse effects if one of their top three suppliers went under.
There’s little to no room for error anymore.
While you used you get six or even 12 months from the time a business showed signs of trouble before it failed, that window has been slashed to weeks or even days in some cases.
No matter how stable you believe your suppliers, consider this to protect your own supply chain.
Chances are your company has stepped up the frequency of its checks for key customers.
You want to do the same with the businesses providing the goods and services you can’t do without.
E&Y goes so far as to say firms should have audit power over their most critical suppliers’ books.
Might not be an option.
But at the least, you do want to make sure you’re looking at current financial info.