FW: Based on your experience, what steps do supply chain companies need to take following the insolvency of a major customer? How important is early action to manage the risks?
Tilley: Insolvencies do not occur without some warning signs. At the first sign of distress, overdue receivables should be collected before further shipment and no shipment should be made that increases exposure. Any consignment inventory should be retrieved or ring-fenced and ownership adequately documented. Making further shipments conditional on total receivables payment would be an ideal scenario, but this may hasten triggering an insolvency event at the customer and a greater loss. A planned reduction of exposure with the customer as part of an overall turnaro…
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