Crisis Management: What do you do when a supplier suddenly goes out of business?

One of our customers was recently hit with a crisis— one of their suppliers suddenly went out of business. In addition to material sourcing issues, legal and accounting problems were adding to the mound of growing concerns. To add further frenzy to the mix, these products were built to order, which meant that the customer didn’t maintain a safety stock. With only a few days warning, they were left without the parts to manufacture the products needed to meet customer demands.

Unfortunately, things like this happen even with the most advanced technology and planning tools available. When customers are hit with the inevitable disaster, flexibility and rapid response are essential to help get businesses back on track. During times of crises, when your primary concern must be to resolve the situation and keep your customer calm and happy, an extremely valuable and welcome resource is a trusted partner to help you get through it. As a 3PL provider, our job is to manage the logistics aspects of the crisis so that our customer can focus on delivering quality customer care and ensuring that their core business continues uninterrupted.

For this particular situation, our customer quickly agreed with their current supplier to purchase the existing inventory until they could source a new supplier. This wise move bought them enough time call to Langham Logistics to enlist our aid in managing the crisis. With our numerous partners in transportation, we were able to secure the equipment needed to relocate all of the available stock to our Indianapolis warehouse. In addition, we sourced partners that would be able to make multiple runs to replenish the supply as customer orders were created. By working together as a team, our customer was able to focus on sourcing a new parts supplier, while maintaining their customer’s satisfaction, with Langham focusing on the logistics.

For more information on how Langham Logistics can help your company in a time of crisis, call our emergency hotline at 1-855-TRANS911.

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