Procurement practices

3. Procurement practices

Suppliers

 Does your customer depend on too few suppliers, who could file for insolvency or experience difficulties because of COVID-19?  Has your customer got suspension of deliveries or immediate collections by other suppliers?  Has your customer frequently changed their suppliers because of failed business relationships?  Has your customer sought an alternative supplier for what your business currently supplies them with?

Orders

 Has your customer made baseless complaints that could be used as a pretext for delaying payments?  Has your customer made any dramatic changes in their ordered quantities lately (i.e. they buy much less to keep expenditure down, or they buy much more, knowing that they will soon not be able to make purchases)?

Next: 3. Procurement practices