Your key supplier is in financial trouble. How will you secure your long-term partnership stability?

Depending on the strategic importance of the category and relationship, in addition to readjusted pay out plan, some of the vendor operational costs and infrastructure related investments can be picked up as a part of a joint/investing engagement where the project can continue in a seamless manner (being the first priority) while the ROI for buying organization can be linked to the futuristic strategy of either continuity with the vendor to bring back their stability or a mutually agreed acquisition option.

We will always have a couple of suppliers in place for the same products to mitigate risks while maintaining the primary relationship. But if we did not, we would sit down with the factories and work out a collaborative solutions- Work together on cost-saving measures, like bulk purchasing or shared logistics, to improve their financial health.

Lorsque vos fournisseurs sont en difficulté financière, un dialogue ouvert et transparent est une excellente solution , vous devriez voir ensemble en toute transparence les vraies causes de cette difficulté et vous posez des questions sensées afin de voir les causes profondes, si par ex votre fournisseur est en situation défaillante temporaire, ou si par exemple votre fournisseur a des créances qu'il n'a pas encore pu encaisser par ses clients , il est important de savoir si le problème est à court terme ou long terme , toutes ces questions et réponses peuvent atterrir lors d'un dialogue et une empathie mutuelles avec votre fournisseur .

To secure long-term partnership stability with a key supplier facing financial difficulties, some of the helpful steps may include; offering financial assistance such as expedited payments or advance payments for future orders to improve their cash flow. Exploring options for providing short-term loans or extending credit terms to help them manage their financial obligations. Considering investing in the supplier’s business to strengthen their financial position and ensure long-term stability.

Strategic planning helps support a key supplier in financial trouble by identifying proactive measures such as offering flexible payment terms, providing financial assistance, or increasing order volumes. These actions demonstrate commitment and foster trust, strengthening the partnership. By stabilizing the supplier, you ensure continuity and reliability in your supply chain, promoting long-term stability and mutual growth.