A
combination of recent market volatility 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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