Your Supply Chain Struggles Need a Debt Collector in Michigan
Have you been experiencing supply chain disruptions?
Are they affecting your production?
If you’re a manufacturer, you’ve likely noticed the backups in the supply chain. According to an article from Fast Company, a typical shipping container now spends 20% longer in transit than before the pandemic. From port disruptions to trucking challenges, getting your products to your customer can be difficult and can have ramifications when selling on credit.
Your customer typically doesn’t have to pay until they receive your products. Here are some situations that could affect your payment:
- If they receive the products later than expected, your cash flow could be impacted.
- If your contracts detail a time period in which the customer will receive the products and that time period is missed, your customer could argue that it’s a breach of your contract and could stall their payment.
- If the products you’re manufacturing are seasonal and get to your customer late, they may argue they shouldn’t have to pay because the products are no longer useful to them.
Many large manufacturers are remedying this situation by having open communication with their customers and communicating a solution, but that might not be possible for you if you’re a smaller company.
These supply chain issues might also impact your production style and cash flow. If you use a “just-in-time” manufacturing style, you make your profit by selling, producing, and shipping your products in the shortest amount of time possible with little room for inventory. To respond to the supply chain disruptions and change in supply and demand, you might have started producing more products than necessary, leading to more inventory. This excess inventory can impact your production and is an additional cost you need to factor into your operations.
RSD Can Help You Collect and Strengthen Your Risk Management System
Has your customer become a debtor?
If you’re having trouble being paid, a knowledgeable and professional debt collector in Michigan can help!
Ross, Stuart & Dawson can make contact with your debtor and remind them of their promise of payment. Angry people don’t write checks, which is why RSD uses a kind approach to collection.
These supply chain hiccups are predicted to continue throughout 2022, so you may want to strengthen your credit risk management system. RSD can work with you to find gaps and weaknesses in your system and provide solutions.
Contact RSD today for debt collection in Michigan!