When they cannot deliver.
WHAT FAILURE LOOKS LIKE
Missed deliveries Quality collapse Ceasing to respond Financial difficulty Ceasing to trade
WHAT WARNING SIGNS APPEAR EARLY
Slower responses Requests for earlier payment Staff turnover Deliveries becoming inconsistent Excuses that change
WHY EARLY PAYMENT REQUESTS MATTER
They frequently indicate cash difficulty.
WHAT TO DO ON SEEING THEM
Establish an alternative, quietly.
WHAT TO DO WHEN FAILURE OCCURS
Establish the facts and the immediate impact Secure anything of yours in their possession Activate the alternative Inform anyone affected
WHAT TO SECURE
Your materials, tooling, data and documentation.
WHY IMMEDIATELY
It becomes difficult once insolvency proceedings begin.
WHAT TO CHECK IN THE CONTRACT
Your rights on their default Whether you have any security What you have prepaid
WHAT TO DO ABOUT PREPAYMENTS
Establish your position, and take advice if substantial.
WHAT TO DO ABOUT CUSTOMERS AFFECTED
Tell them before they discover it.
WHAT TO SAY
What happened, what you are doing, and when.
WHAT NOT TO DO
Blame the supplier as though it absolves you.
WHY
Your customer contracted with you.
WHAT TO DO AFTERWARDS
Review how the dependency arose.
WHAT TO CHANGE
Whatever allowed a single failure to stop you.
