Penelope Larson

Business

25 April, 16:15

Assessment of a potential supplier's financial situation:

1. is usually unnecessary because it is highly unlikely that a supplier will go out of business, and, even if they do, it is relatively easy to replace a supplier.

2. may yield substantial opportunities for negotiating favorable terms for both buying and selling organizations.

3. is best left to the finance department which will alert supply to any issues that might adversely affect a pending deal.

4. is always necessary and follows a strict protocol no matter what type of purchase or dollar value.

5. seldom relies on financial information provided by the supplier.