Your three-step plan for managing insolvency in your supply chain

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid”][vc_column_text]As sad as it is, insolvency is a reality many businesses face. For whatever reason, companies in the UK and other parts of the world are finding themselves dealing with the negative repercussions of insolvency, and often it’s not just the business whose liabilities have come to exceed their assets that are affected.

While it’s never a good situation to be in, it’s essential to protect yourself when a company you work with is facing insolvency.

Step one: Outsource carefully

Take a careful look over your current supply chain. Are all the places and organisations you outsource from and work with entirely reliable? Do they have a history of providing adequate and unproductive results? Do they treat all businesses they work with the same, or are they more likely to favour some over others? Are they charging the fairest rates for their products and services? All of these things could indicate that their business practices are not of the highest standard and carrying out a credit check can help flag up potential issues.

Step two: Keep an eye on current affairs

Brexit has already begun to touch businesses in the UK, Europe and globally in both negative and positive ways. Some smaller UK businesses are seeing sales to other countries soar, due to the drop in value the pound has seen over the past two years. This is a perfect example of a positive repercussion coming from a seemingly adverse event. On the other hand, businesses based in the UK are finding prices for services or products overseas are growing at a rate which cannot be maintained, and are having to alter their supply chain accordingly.

It’s therefore vital to ensure you’re working with organisations who have viable and measured plans for the future, and that all links on your supply chain are being upfront and honest about where and how they’re spending and sourcing.

Step three: Have a backup plan

It’s not unusual to see insolvency hit some sectors harder than others, and sometimes it can’t be predicted. A backup plan will ensure that, should the worst happen, you don’t feel the ripple effect that it might have on your company and that you can get back to business as usual in as short a time as is possible.

To curate this backup plan, it’s important to seek professional legal advice from a knowledgeable and experienced team. If you’re in need of legal assistance, request a call back request a call back with one of our team at Audley Chaucer.[/vc_column_text][/vc_column][/vc_row]

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