How Safe is your Supply Chain?

We’ve covered several aspects of your business recently but what about other businesses – in particular your suppliers. Have you considered what would happen if one of the links in your ‘supply chain’ broke? It’s time to set up a contingency plan.

OK, it’s not so terrible if one of your many product suppliers ceased trading, unless of course you’d paid them pro forma but supposing your IT maintenance supplier went out of business. What would happen if all your software and systems went down? You couldn’t operate tills, no card processing, no sales and stock information? That’s the type of disaster situation which could bring an efficient company to it’s knees.

Take some time out with your management and go through your supplier listing. Draw up a plan of what alternative arrangements need to be in place if they ceased trading with immediate effect. Check which suppliers may be part of the same group. What if the whole group went into administration? Speak to critical suppliers and ask them if they have any contingency arrangements in place.  A word of warning. Many years ago our software supplier offered us 3 years maintenance for the cost of 2 if we paid them now. Thankfully, we declined the offer as within a month they went into Liquidation.

As we’ve said many times – 2009 is going to be a difficult year. There are dangers to businesses from all directions and as the well known saying goes ‘Fail to Prepare then be Prepared to Fail’

Tony Heywood – Gilcrest Services Ltd
Retail Troubleshooter
Rescue and Recovery Consultant

Footnote on the last post ‘Prepare for the Invasion of Tourist Shoppers’

Just in case you didn’t see the additional comments

Here’s the HM Revenue & Customs link for Tax Free Shopping (where overseas customers get the VAT refunded)

This may also be useful

Global Refund

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