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Case Study: Supplier Management

“Our supplier went bust, we didn’t see that coming”

How often do you meet your strategic suppliers? Do you ask them how there are doing financially?

Example: windfarm maintenance service


  • Outsourced maintenance of the windmills = total reliability on the supplier
  • No procedure in place to audit the supplier’s finances
  • The supplier declared bankruptcy = Immediate stop of service

Strategy and action:

  • New supplier to source in emergency
  • Create a system to check the suppliers’ financial health


  • New supplier in place within a week time
  • Supply chain secured with a global health check
  • New procedure to check finances at tender level
  • Supplier management: creation of a matrix to know how often to request the supplier’s accounts depending on how strategic they are for the business
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