False sense of security

 

To maintain your company’s well-being, rigorous 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 this unfortunately provides no guarantee as to future performance.

Be alert to tell-tale signs such as erratic ordering patterns, persistent delays in payments, failure to return calls or respond to emails etc.

Very few businesses fail overnight and there are usually enough warning signals which should enable a supplier to implement actions to reduce its risk.

Operating in today’s business climate 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.