Sometimes suppliers run into rough times, even when they are performing adequately for you.

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So what do you do?

Stick with the supplier you like? Or read the tea leaves and find a new supplier before things get bad?

These types of questions were running through my mind when I read the article “Ruling Bans Vonage From Signing Up New Customers.”

Vonage, as I understand it, is not yet profitable. And with the inability to sign up new customers in the near term, their future looks very bleak.

So what are their customers to do?

Should they hope that things will get worked out and everything will be fine? Or should they find a new supplier sooner rather than later to avoid the risk to their continuity of supply?

Enough of their current customers will likely take the second option that it makes the first option even less attractive.

The financially struggling supplier scenario frequently occurs in purchasing with all types of suppliers. You have to watch the news. While you have to avoid any knee-jerk reactions, you also have to seriously consider what your contingency plan is, what will trigger you to execute it, and when.

To Your Career,
Charles Dominick, SPSM
President
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM Certification Online At
http://www.NextLevelPurchasing.com

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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