Tuesday, November 25, 2008

What You Can Do to Survive the Credit Crunch!

Review the financials and balance sheets of key suppliers
Expand purchasing/finance risk assessment projects
Intensify supplier audits
Tighten supplier-rating programs
Tighten credit policies with suppliers
Reevaluate in-house inventory and future stock needs
Reopen new-supplier development programs
Reopen/rewrite supply agreements for 2009
Initiate new materials-cost reduction efforts
Review and revise manufacturing and buying forecasts

Larson note: Take the initiative and be proactive. Meet with each of your top 10 customers and get the inside scoop on what is really happening. Go and take your banker out to lunch on your dime. Go over your projected needs for the next 6 months and reduce or shift inventory accordingly and/or set up just-in-time arrangements with suppliers so you don’t have all your money sitting on the shelf locked up in inventory, and for that matter do you know what your inventory turn over ratio is? Good time to figure that out. You can go out and shop you needs as well. You can bet there are Lots of hungry companies willing to swing a good deal in your direction, perhaps? The ball is in the buyers court, use it for what its worth

Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better

P.S. To get on my Newzine List email me.

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