By Foster Finley -- Supply Chain Management Review, 7/1/2009
“Dear Customer: We are liquidating and are unable to fulfill our current orders on file for you...”
With little advance warning, supplier communiqués like this are becoming increasingly common in an economic environment that saw 2008 bankruptcy filings in the United States jump by 54 percent from the prior year. Even if your key suppliers are not filing for bankruptcy or ceasing operations, you may be still confronted with actions that disrupt the continuity of supplies or significantly affect your finances—actions such as take-it-or-leave-it price increases, demands for faster payment terms, delivery of less-than-ordered quantities, and longer delivery lead times.
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