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What to do if a key supplier is gone

The sudden bankruptcy or exit of a key supplier can stop deliveries and sales. We look at how to prepare in advance and what to do if it has already happened.

Updated: 28 June 2026 · Author: Evgeny Telenkov · ≈ 6 min read

Why this is a critical risk

If supply or a key component depends on one supplier, its exit breaks the whole chain. A real case is in the article “What a day of downtime costs”: a supplier's bankruptcy cost the company about RUB 180,000 per day of downtime.

What to prepare in advance

  • A list of backup suppliers for critical items, with contacts and terms.
  • Diversification: do not place critical purchases with one counterparty.
  • Stock of key items to cover the switchover period.
  • A simple switchover procedure: who does what when the main supplier drops out (part of the BCP).
  • Monitoring supplier health: early signs of trouble.

If the supplier has already gone

  1. Estimate your stock and how long current resources will last.
  2. Activate backup suppliers from the list.
  3. Tell customers honestly about timelines and manage their expectations.
  4. Once things are stable, put the backup arrangements in writing so that you no longer depend on one counterparty.

Frequently asked questions

How many backup suppliers do you need?

For each critical item, it is best to have at least one vetted backup supplier and not to place more than a set share of purchases with one counterparty.

How can you quickly gauge the scale of the problem when a supplier leaves?

Estimate your stock of key items and how long it will last. This determines how much time you have to switch to the backup.

From the risk register to management decisions

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Evgeny Telenkov
Evgeny Telenkov
Director, Business Continuity Practice · PhD in Economics · Academic Director and Chief Examiner
Best Risk Manager of Russia 2020 (RusRisk). Built business continuity at Nornickel from scratch. Author of more than 30 continuity plans. Worked in the risk functions of Beeline, Rosneft and EY. Chief Risk Officer of a USD 20 billion petrochemical megaproject. Deputy Chair of Rosstandart Technical Committee 010 “Risk Management”, co-author of six GOST R standards. Author of the ERGP and SAFE programmes.
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