When your supply chain operation is already playing it close to the vest, the last thing you need is for one (or more) of your critical suppliers to pull the rug out from under you.

Just ask any of the companies that have relied on China for supplies, parts and products.

Tens of thousands of manufacturers have gone belly up in China — often overnight — leaving many of your peers scrambling for a back-up plan.

If your business handles mainly middle of the road product, available from more than one source, you’re certainly better positioned.

But that doesn’t mean you don’t have to prepare yourself for any problems that might pop up.

What if another customer fails to pay your supplier, and it means your supplier can’t fill your order? What if something as simple as a shortage of shipping materials hangs up your next delivery?

No matter how secure you might feel today, you still don’t want to come up short if the unexpected occurs.

There are three ways you could offer to help:

• If your supplier is unable to obtain necessary product, offer to go one step further and deal directly with your supplier’s supplier. You might even be able to generate a volume discount.
• Depending on your relationship with the supplier, you could offer expert advice from your own staff on navigating process changes that could improve operations for the supplier.
• If it’s a matter of money — your supplier is locked into a contract with you, but the supplier’s costs have unexpectedly increased, you always could offer to negotiate a way to mitigate that cost difference.

Tags: contract, customer, parts, product, supplier, supplies, supply chain