Entrepreneurs can take several steps to mitigate risks associated with suppliers:
Diversification: Avoid relying on a single supplier. Diversify your supplier base to spread risk. Contracts: Use detailed contracts that outline quality standards, delivery schedules, and penalties for non-compliance. Regular Audits: Conduct regular audits of your suppliers to ensure ongoing compliance with your standards. Backup Plans: Have contingency plans in place for critical supplies, including backup suppliers. Build Relationships: Develop strong relationships with your suppliers. Good relationships can lead to better terms, improved quality, and more reliable service.