This Halloween, we’re shining a light on a very real fright for procurement professionals: risky suppliers. Just like haunted houses, some suppliers may look perfectly fine at first glance- but hidden risks can lurk beneath the surface, threatening budgets, delivery schedules, and even your company’s reputation.
Understanding how to spot these “scary suppliers” is crucial to keeping your supply chain safe and your business running smoothly. Here’s our guide to identifying the ones that might give you a fright…
1. The Vanishing Act: poor reliability
A supplier that repeatedly misses deadlines, delivers incomplete orders, or struggles to communicate effectively can quickly become a nightmare. These “vanishing” suppliers can disrupt production and leave your team scrambling at the worst possible moments. Look for consistency in delivery performance, and don’t ignore red flags during trial periods.
2. The Ghostly Reputation: lack of transparency
If a supplier is reluctant to share information about pricing, sourcing, or quality standards, it could signal bigger problems. Ghostly suppliers often hide critical details that affect your procurement decisions. Insist on transparency and establish clear reporting requirements from the outset.
3. The Trickster: hidden costs and terms
Beware of suppliers who lure you in with attractive quotes but sneak in hidden fees, unclear payment terms, or unfavourable contract clauses. These tricksters can inflate your costs and complicate budgeting. Always read contracts carefully and clarify any ambiguous terms before committing.
4. The Monster: poor compliance or ethical standards
Suppliers that fail to meet legal, regulatory, or ethical standards are the real monsters in procurement. Non-compliance can put your organisation at risk of fines, reputational damage, or supply chain disruption. Conduct thorough due diligence and prioritise suppliers with robust compliance records.
5. The Shape-Shifter: inconsistent quality
A supplier whose product or service quality fluctuates can create ongoing headaches. Even small inconsistencies can cause delays, returns, or dissatisfied clients. Implement quality checks and seek references or testimonials to ensure consistency.
Avoiding a procurement horror story
The best way to stay ahead of scary suppliers is through rigorous evaluation, clear contracts, and proactive relationship management. By assessing reliability, transparency, costs, compliance, and quality, you can ensure your supply chain remains secure, and your team can focus on growth instead of ghostbusting.
This Halloween, don’t let hidden supplier risks spook your business. With careful vetting and strategic oversight, you can transform potential horrors into smooth, reliable partnerships. At Accelerate our procurement consultants can support you in keeping supply chains safe, spook-free, and successful. To discuss how our procurement consultancy can help, get in touch today.