Are you too dependent on key suppliers?
It makes sense to give your best suppliers a good chunk of your business. But if you rely too heavily on a small number of suppliers, you can really paint yourself into a corner.
Many of peers appear to be doing just that. A new benchmark report from CAPS Research revealed some troubling findings about supplier dependency.
Here’s what the report discovered:
- Only 18% of companies have a formal policy that limits how much business they can give to one supplier, and
- Less than 50% of companies track supplier dependency.
To avoid becoming too dependent on a single supplier, experts suggest that companies draft a policy which limits the amount of business you can give one supplier to around 35%.
Readers, does your company have a limit on how much business you can give a single supplier?
- Share on
Free Training & Resources
White Papers
Provided by UJET
Further Reading
Influential people who have positive attitudes can help others around them think more positively. The opposite is also true. Negative pe...
CFOs hate to hear about poor financial literacy among workers, especially the folks they count as friends. The latest economic news on that...
With a new year comes new state laws with compliance challenges that could disrupt business as usual. In addition to the minimum wage hi...
A federal ban on employee non-compete agreements may not go into effect in September after all. Two lawsuits scheduled to be decided in...
The traditional “bean counter” role of the CFO is a thing of the past. Today’s financial leaders are expected to boost ef...
Don’t you hate the regret that sinks in after you make a poor decision? That feeling is exactly why finance leaders want to be better...
