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Distressed Suppliers
Often, purchasers of goods are confronted with financially troubled suppliers and have to decide how best to deal with the supplier in question. There are many pitfalls that you need to avoid. With the complete arsenal of law and information, the customer should be in a position to maneuver through these situations while minimizing risk and cost. The following is information to assist purchasers when confronted with these issues.
Always Research Supplier Before Entering into Supply Contract
In today's economic environment, many purchasers place significant weight on price when deciding from whom to buy products. Unfortunately, purchasers that place too much weight on price, rather than on financial stability and the viability of a supplier, may find that its goods cost much more in the long run. It is very risky for a purchaser to enter into a contract with a potential supplier who is not financially stable or who does not have competent management, even at a very low price, particularly if this is to be a single source supplier and it is difficult to quickly resource to a new supplier should trouble arise.
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