Supplier Default

Supplier Default occurs when a vendor fails to meet its contractual obligations, such as delivering goods or services on time, meeting quality standards, or adhering to agreed terms. Supplier defaults can disrupt operations and lead to financial losses.

Common causes of supplier default include:

• Financial instability or bankruptcy
• Production capacity issues
• Logistics disruptions
• Non-compliance with regulations
• Labor strikes or workforce shortages

Supplier Relationship Management (SRM) platforms help monitor supplier performance, identify early warning signs of potential defaults, and implement contingency plans to mitigate risks.