What Are the Risks Involved in Supplier Relationships?
Engaging with suppliers involves certain risks that need to be managed:
Supply Chain Disruption: Natural disasters, political instability, or economic downturns can affect the supplier’s ability to deliver. Quality Issues: Poor quality materials or services can lead to product recalls and damage to brand reputation. Financial Stability: A supplier facing financial difficulties may not be able to meet their commitments. Compliance: Suppliers must adhere to various regulations and standards, failing which could have legal implications for your business.