All Businesses Are Interdependent - Is That A Good Thing?

Unless you work in a Communist State or in the Publicrequirements. You'll also be able to agree a price
Sector, all businesses are interdependent. What thisbefore the emergency happens. Then the new
means is that without other similar businesses around,supplier won't be able to hold you to ransom.
your business would struggle to exist. Is that a goodAre your competitors really your competition?
thing?It's also important to conduct a thorough analysis on
The supply chainyour competition. Then meet them for lunch. First of all
Although you may think that you can survive byreview your local competitor's product and service
yourself, just stop and think about how reliant your areoffering. Review how much they're charging and who
on receiving your wholesale supplies. This doesn't justtheir existing clients are. The chances are that after
apply to products. There are many wholesale suppliersyou take your magnifying glasses off you'll realise that
to the service industry such as IT Services or theyour businesses are more different than similar. This
Yellow Pages. Could you really exist without anymeans that you both have a lot to talk about.
external help?You don't have to be scared about meeting your
Keep your supply chain options open'competition' for lunch. You're not going to talk about
It's all and well having a reliable, automated set ofyou existing profits or your existing operating systems.
suppliers. But what happens if a supplier goesSo you're not divulging any significant trade secrets.
bankrupt? What happens if a supplier goes on strike?The worst thing that will come out of the meeting is an
You have to have an alternative plan in place in caseoccasional customer referral. The best thing that will
the worst happens.come out of the meeting is a long-term strategic
If you don't have an alternative plan in place then it'salliance.
your customers that will suffer. Even although youDo you co-exist or are you making things hard for
may have existing service level agreements in placeyourself?
with your suppliers, nothing is guaranteed in business.The majority of businesses that try to survive without
Arrange an alternative supply chaincontinually analysing their supply chain and interacting
There are bound to be supplier companies out therewith their so-called competition aren't living up to their
dying to win your business. Why not arrange a 'firstfull potential. The fact that businesses are
alternative' option with them? I.e. If your existinginterdependent is a good thing only if businesses
suppliers let you down, you've already arranged whichthemselves recognise it and embrace it. Only then can
company you will call. This has two benefits for you.they take full advantage of the subtle relationships that
You've already ascertained that the alternative suppliercan significantly impact their customer offering.
has the capability of meeting your volume