What ties you to others
Managing your dependence on clients and suppliers
Concentration is comfortable until the day it no longer is.
Objectives
- Measure your dependence on a client, a supplier, a principal contractor
- Identify the clauses and practices that shift risk onto the smaller of the two parties
- Build a purchasing policy that takes into account more than price
- Decide which concentration you accept, and which you reduce
Programme
- Morning: Measuring before judging: Calculating client concentration, and the threshold above which it determines your survival · The single supplier: when it is a risk, when it is a partnership · Payment terms: what the applicable law provides, what happens in practice, and what it costs in cash flow
- Afternoon: Rebalancing without falling out: Diversifying gradually, without losing the main client · Purchasing criteria beyond price: proximity, reversibility, social conditions · Your dependence reduction plan, with its deadlines
Prerequisites
Have a breakdown of your turnover by client.
What you take away
Your concentration ratios calculated and your dependence reduction plan.