07/21/2026
The recent Cyclospora outbreak tied to packaged lettuce is a great reminder that you can build an incredible company, do everything right internally AND still have your business disrupted by a vendor you don't control.
This is exactly why in client sessions I frequently ask around SWOT methodology, "Is there anything else this quarter we need to proactively de-risk around?"
Every business has vendor risk, whether we acknowledge it or not. Yours does, and mine does.
Maybe you're relying on a single supplier for a critical product. Maybe your payroll company, IT provider or software platform is essential to keeping the lights on. Maybe one vendor supplies 80% of your product that you sell - IKES!
I've personally seen companies brought to their knees because of problems they didn't create themselves. A supplier missed deliveries crushing the customer experience. A software provider went down and held the entire company hostage. A manufacturer couldn't fulfill orders after they had their best quarter of sales ever.
In every case, the customer ultimately doesn't care whose fault it was. They only know that your company can't deliver when they need it.
The strongest businesses I work with don't just build great internal operations for themselves. They intentionally reduce the risk created by the businesses and vendors they depend on.
Here are 10 vendor risks we have commonly seen that you may need to consider today:
1️⃣ Food Safety & Product Quality
One contaminated product can instantly become your reputation (as we've now seen!).
2️⃣ Raw Material Dependency
If one vendor disappears tomorrow, how long until your business feels it?
3️⃣ Financial Stability
A struggling supplier often becomes your problem before you ever see their financial statements.
4️⃣ Operational Reliability
Late shipments. Production delays. Missed deadlines. Your customers only see one company that failed.
5️⃣ Cybersecurity
YOUR systems may be secure... What about your payroll provider? IT company? Software vendors?
6️⃣ Regulatory & Compliance Failures
When vendors ignore regulations, investigations and lawsuits often ripple downstream.
7️⃣ Talent & Leadership Problems
Poorly run vendors usually have high turnover, weak leadership and inconsistent ex*****on which eventually lands on your doorstep. Maybe they need a business coach too... 😉
8️⃣ Mis-Scoped Work
When your vendors mis-scope work and they hold up your project, your customer isn't complaining to the subcontractors involved.
9️⃣ Capacity Constraints
Can your supplier actually support your growth plan... or will THEY become YOUR bottleneck?
🔟 Lack of Contingency Planning
Every critical vendor should have one question answered: "What's our plan B?"
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Patrick Metzger Patrick Metzger Expert EOS Implementer, Coach & Speaker