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Everybody’s Worried About Everybody

  • By Josh Green
  • · November 12, 2008
  • ·

Two interesting posts over at SpendMatters:

* One notes that Indian suppliers are refusing to take orders from American companies because they’re worried the American companies won’t be able to pay.  (This, by the way, is consistent with what we’ve been hearing from suppliers.)

* The second highlights concerns that buyers have (or should have) about the effect of the financial crisis on suppliers…  Will they survive?  Will they cut corners?

So suppliers are concerned about buyers, and buyers are concerned about suppliers…  I.e., everybody’s worried about everybody, and rightfully so.  Given this state of affairs, what steps should solid buyers take?

1) Be prepared to prove to your suppliers that you’re solid.  References from your customers and your bankers may be able to help in this regard.

2) As Jason from SpendMatters suggests, be vigilant in monitoring your suppliers.  Check out a previous Panjiva post on how to look into a supplier’s financial health.

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