Monitoring

Further to my recent blog concerning the importance of credit checking and monitoring your new and existing client base, there is one other list of businesses that you should be checking and keeping an eye on and that’s your suppliers.

If you think about it for a moment it soon becomes clear how reliant we are these days on a stable supply chain. Imagine if one key link in that chain suddenly were unable to fulfill your requirements.

I wonder how many companies credit check a new supplier before they give them an order and stop using their existing one. I appreciate price is always going to be an issue when placing an order and switching suppliers, but the cheaper option with three recent county court judgements against them may not turn out to be that cheap when they let you down. We all know of cases where a company who is in trouble will drop their prices to in effect ‘buy’ the business, but it is a risky proposition for both them and potentially you.  Also you might think there is no credit risk, but if something goes wrong with an order and you need to seek a refund for any reason then that supplier will suddenly become a debtor.

If you have access to our credit reporting service then it makes absolute sense to download a credit report on any new and existing key suppliers. When you do make sure you select the ‘Monitoring’ option so that we can keep you up to date with what’s happening with them.

As always if you need any assistance whatsoever please call me or one of our Helpdesk team on 020 8846 0000 or email me on cshirley@cpa.cp.uk.

Cris Shirley 17/7/2017

Customer Services Manager

Email me

See our other blogs