A false sense of security

Until such times that they are directly faced with a problem it is the nature of most companies to assume that all is well with their systems and operating procedures. These companies are those that are most likely to be blindsided.

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.

In truth very few businesses fail overnight and there are usually enough warning signals which should enable a supplier to reduce its risk.

Current market conditions will continue to test but undoubtedly there will also be opportunities for those placed to take advantage of less efficiently organised companies.

By far the biggest danger to the welfare of any organisation is complacency.