As we look around us as small to medium sized business operators, several of our brethren are folding. This is not always due to their own operational issues or financial strength.  Supplier can be a major cause.  Note some ideas cultivated from CFO.com Editor Josh Hyatt.  This is good advice for large and smaller business:

With every link you add to your supply chain, the chance of a disruption rises. But you can take steps to reduce your vulnerability.

Identify Critical Suppliers. A company can't begin to mitigate against risk until it knows where it is most vulnerable. Which disruptions have the potential to do the most financial damage?

Cultivate Multiple Suppliers. Depending on the location, commodity or service; one backup might not be enough.

Form Cross-Functional Teams. Various departments need to be involved in planning for contingencies, including purchasing and logistics.

Check Out Your Supplier's Address. You can't afford to guard against every natural disaster. But if a supplier is situated in a precarious spot — four feet above sea level on the Gulf coast, say — you'd better be prepared. Or choose a different supplier.

Collaborate More. If a supplier makes anything other than a commodity, try to strengthen your ties with a joint venture of some type.

Rethink Logistics. Given what happened with fuel costs last year, it may be worth re-analyzing the total flow of goods in the chain. Price volatility (in food, for example) can also spark labor unrest and slowdowns.  Remember to look below the first tier of suppliers.

 Incorporate Technology. Managing information in a supply chain may be more critical than managing goods. Knowing where your goods are makes it easier to act strategically to avoid delays.

 Keep Financial Tabs. As hard as it may be — especially for your suppliers based in, say, China — it's important to find out as much as you can. For instance, is a supplier paying its bills on time? Are its customers ordering less? Tightening credit lines and rising operational costs will drag some suppliers down. Others may run short on cash, leading them to skimp on quality or materials.

Credit given to: CFO magazine April issue Page 62,  By Josh Hyatt Contributing editor of CFO.