Manufacturing delays, transportation shortages and overall supply chain issues caused problems for many businesses from manufacturing to retail. These situations outside of your control can also result in further problems for your business if you fail to supply, provide or have in inventory sufficient products for your customers. There are steps you can take to avoid, limit or minimize claims against you in these situations.
- Review any and all contract documents to assess your potential exposure and the obligations others owe to you if these problems arise.
- Redraft or amend your contract documents to limit your exposure in the future and reject other’s contract language that may not inure to your benefit.
- Address price increases, delays and shortages early with customers and suppliers.
- Consider increasing suppliers or improving your status with existing suppliers.
- Evaluate paying and requiring deposits or prepayments, and protecting them.
- Assess providing alternative or substitute products.
- Look for private label manufacturers.
- Stay in touch with cooperatives, associations and other industry groups.
- Cooperate with competitors to share or trade work or inventories, or to bulk buy.
- Evaluate and prioritize customers and institute rationing if necessary.
- Offer future discounts, coupons or other benefits to unhappy customers.
- Communicate with and track lost sales and customers to solicit them again when normal returns.
Do not allow the conditions beyond your control to control your condition or your business. If you have problems or questions, please contact us to see if we can help.