Handling threats from a critical supplier_2
19 July 2012
Q: My company has a long-term, non-contract arrangement with a critical supplier. The supplier is threatening to cease deliveries unless we agree to an immediate 20 per cent price rise for each consignment. What can we do?
A: Steve Haslett, managing director of the Independent Manufacturers Alliance, writes: When faced with such a situation, a business must be aware of current market conditions and be able to take action proactively to deal with it. All too often businesses are caught on the hop, which leads to knee-jerk reactions.
In this situation, however, you must...