Experts recommend a three-step plan:

1. Comb through your list of suppliers and identify the most-critical ones. In many cases, this is likely to be “sole source” suppliers for you.

How much stock do you have?

How long could you exist the stock you have on hand?

Determine how much time and money it would take you to find a new supplier that’ll meet your needs.  Are back-ups available?

Start putting together contingency plans now, before the need becomes extremely urgent.

2. How financially stable are your suppliers? Are they going to be able to survive if the going gets tough? There are factors you can’t control — like other business that don’t pay their bills — that can drive your suppliers out of business. For publicly-held suppliers, financial information is available on-line. For private companies, you’ll have to rely on “intelligence” — are deliveries running later? Short quantities with ”ship you more later” promises? Suggestions to shorten payment terms?

3. Finally, there’s a strategic move you can make now that could pay big dividends down the road.

If there are critical suppliers (or even one) that you know you’ll have difficulty replacing, propose working with that supplier in a mutually beneficial arrangement.

For example, you could buy “ahead” — more than you usually do. This can give a supplier desperately needed cash, and might be enough to tide them over.

Some experts recommend you could even consider investing in the supplier, or buying out the supplier. That might be a bit extreme, but it certainly will keep the pipeline open.

Why’s that? Because the cheapest price often comes at a cost: product quality, strained relations with vendors, alienation from other vendors.

One way to steer clear of this situation is to take a slightly different approach to your negotiations with vendors. Think of it as a situation where you’re both trying to reach the point that is most beneficial to both of you.

This doesn’t mean it’s all chummy-chummy when you meet at the bargaining table.

Before you pull up a chair, there are several planning steps:

• clearly define exactly what it is you’re seeking
• determine if it’s a commodity or strategic purchase
• think ahead and determine how far you can “bend”
• be prepared to keep the supplier off-balance with uncertainty as to whether it’ll get your business, and
• what extra or “above-and-beyond” perks could you walk away with.

Always be thinking a couple of steps ahead, too. What you earn in saved costs could quickly be frittered away the first time there’s a glitch in your system.

Be prepared to ask yourself: The next time something goes wrong, which vendor’s going to be more willing to work with you and help, whether it’s replacement goods or stock or an expedited order? Do you think the vendor that you spent hours pounding into the bargaining table is going to go to any unusual lengths for you?

Of course not. But vendors who feel they’re working on the same team as you are much more willing to help out a teammate.