Red Flags to Watch for in Supplier Relationships

A few years ago, I worked with a supplier who taught me one of my hardest procurement lessons:

Red flags don’t start loud, they start as whispers.

It began with something small and seemingly insignificant: They took an extra day to send basic documents. Always a casual excuse. I ignored, it was a new contract and I didn’t want to seem difficult.

Then came inconsistent information.

One week they had “more than enough capacity,” the next week they were “handling high demand.” Again, I rationalized it.

The third red flag was the clearest: During a meeting, they made claims that didn’t match their own reports. When I asked for clarity, their answers sounded rehearsed and vague.

That was when I knew something was wrong.

Soon after, the real issue hit, a delivery shortfall that almost disrupted operations. Suddenly, all those whispers became warnings I wished I hadn’t ignored.

That day, I made myself a promise:

Never overlook a red flag, no matter how small.

Here are the ones I should have acted on sooner:

✅ Slow or inconsistent communication: If they struggle now, imagine when pressure increases.

✅ Shifting stories or unclear information: Capacity, pricing, timelines. Once these start changing, dig deeper.

✅ Over-promising without proof: Procurement works with evidence, not excitement.

✅ Avoidance of transparency: Lack of openness usually means something fishy is being covered.

✅ Defensive reaction to simple questions: A good supplier explains; a questionable one deflects.

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