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28/02/2009 - Third of businesses drop customers

One third of major companies have terminated contracts with customers they now perceive as high risk.

In a press release on 16 February 2009 Ernst & Young reported findings from its “Opportunities in Adversity” survey. It found over a third of respondents had terminated contracts with customers, while the same proportion was working hard to broaden its customer base to spread risk.

Meanwhile, the reported approach to suppliers was split. While half were narrowing the supplier base in efforts to negotiate more favourable terms, the other half were broadening the supplier base to mitigate the potential impacts of the failure of a sole supplier.



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