Saturday, September 06, 2008

Production Stopped Due To Out Of Materials

Our production has stopped due to out of materials. I had placed purchase order three weeks ago, but the supplier didn’t delivery the goods to us on time. I already inform boss they are holding our goods until we settle the payment which already overdue.

In fact, my boss already negotiated with them regarding the delay of payment. All because it is quite slow on our debtor collection. We are trying hard to collect more payment but most of the debtor just could not pay us on time. We are short of labour to keep chasing for payment and visit them often.

I wonder do my boss interested to hire Collection Agency to help us collect debtor payment or not. Although we have to pay some fees to the collection agency but I think it is worth to pay a little bit to get back the huge amount owe by customers. We need cash flow to come in and pay to suppliers. If not, our production will be effected seriously. No production how to delivery products to customer on time? I am worrying customer might not want to support us anymore if we continue to delay the delivery, they surely will purchase from other companies and we might losing our customer permanently.

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