A combination of recent market volatility, the continuing spectre of failure in
the Eurozone coupled with latest pronouncements from politicians and economists alike have done little to restore confidence and now more than ever is the time for good housekeeping and firm controls.
Constant monitoring of counter party risk is the order of the day combined with
disciplined inventory control.
Just because a customer has always being reliable in the past is unfortunately no
guide as to future performance. Look out for tell tale signs such as unusual
ordering patterns, delays in payments etc. Very few businesses fail overnight
and there are usually enough warning signals which should enable a supplier to
reduce its risk.
The coming months will continue to test but undoubtedly there will also be opportunities for those placed to take advantage of less efficiently organised
companies. Make sure that when the dust eventually settles that your company emerges in a stronger position
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