View Full Version : exit strategy

05-01-2014, 03:38 AM
Hi all,
I m in a business that deals with multiple suppliers.
Lately we have detected few non compliance practice from one of the supplier. It has been unanimously agreed for us to exit from this supplier. Meeting has been called to confront them and demand put forward to them to be compliance. 4 months since then not much improvement from them. Now our team however has diverse opinion on the exit strategy planned initially.
1. Exit by documenting all non compliance with records of letters of demand until mutual agreed to dissolve the business relationship. Risk - foul mouthing of each other in market place, damaging both parties carefully craft out corporate branding.
2. Exit 'silently' by continue to seek cooperation from them while stop promoting the supplier goods and plan market depletion concurrently. Within 6 months allow the said supplier goods 'die' a natural death by stopping procurement, distribution and promotions. Business relationship ceased naturally from poor sales performance. Risk - virtually nil with both parties maintaining cordial business relationship and move on.

What do fellow forumers advice be to us? Which strategy are you in favor of and why? Your opinions are highly appreciated! Thanks in advance.

06-25-2014, 09:20 AM
Not sure about the actual question, but generally where it's a mutually beneficial and agreed upon arrangement, laying out the complaints/issues to be addressed/resolved has been the best for us. It gives the other party a chance to fix the issue or if not, come to an agreement why the arrangement is no longer going to work.