Prepare for a critical supplier suddenly stopping supply

When a critical supplier stops delivering, establish what usable stock or service capacity remains and which customer commitments it supports. Set a point for reducing service before that cover runs out. Activate only an alternative you have already assessed, with a named decision owner and a checkpoint to confirm whether the fallback is working.

Confirm the interruption and the stock you can use

Ask the supplier which items or services are affected, the last confirmed delivery and whether it has a reliable update time. Record uncertainty explicitly. A message saying "dispatch hoped for tomorrow" is not a confirmed delivery.

Count usable stock separately from damaged, reserved or unsuitable material. For a service supplier, identify the work that remains accessible and the tasks that depend on the missing service. Use your recovery priorities to decide which commitments to examine first.

Calculate cover as an estimate

A fictional packaging business has 120 usable, uncommitted cartons and expects demand of 30 cartons per working day. Its indicative cover is 120 ÷ 30 = four working days. If demand rises to 40, cover falls to three days. These are planning scenarios, not promises about a delivery or permission to use reserved stock.

1. Day 0: stock coordinatorConfirm 120 usable cartons and the expected 30-per-day demand. Record the affected commitments.
2. Before day 2: operations leadReview remaining cover and the assessed alternative. Reduce new commitments if the fallback is still uncertain.
3. Activation: authorised buyerConfirm the alternative can supply the previously assessed specification within the required time and authority.
4. First delivery: receiving leadCheck the actual supply before restoring the normal service promise.
5. Recovery checkpoint: ownerReview the backlog and stock position; update the next service commitment.

Read from top to bottom. Original ASBG planning example; check the arrangements for your own business.

Act before the last day of cover

Work back from the day stock would run out, allowing time for approval, dispatch, receiving checks and customer updates. In the example, day 2 is an internal review trigger chosen for the fictional circumstances. A different lead time or demand pattern needs a different trigger.

Keep the authority to place an alternative order clear. The person counting stock might not be the person authorised to commit spending. Check the actual price, specification and available quantity before treating an old quote as an available option.

Reduce service honestly

Tell customers which commitments are affected, what is confirmed and when they will next hear from you. Keep contract, cancellation and consumer-rights decisions with the appropriate adviser; a supplier problem does not itself decide those questions. Record each agreed change in the normal customer record.

Business Queensland: business recovery planning includes communication with suppliers, customers and staff during recovery. The stock calculation and timeline above are original planning examples.

Confirm the fallback works

Check the first replacement delivery or service against the scope already assessed. If it fails that check, keep the affected work paused and revise the cover estimate. Record what changed after the incident so the next plan reflects real lead times.

Use this guide for disruption response. Evaluating a completely new supplier requires separate qualification work; an urgent shortage should not erase that step. Put the confirmed trigger and decision owner in your one-page plan.

Prepare for a critical supplier suddenly stopping supply
ASBG source check: 27 September 2026
Guide: https://australiansmallbusiness.com.au/legal/critical-supplier-failure-continuity
Planning example. Follow your assessed emergency procedures and current official directions.

When a critical supplier stops delivering, establish what usable stock or service capacity remains and which customer commitments it supports. Set a point for reducing service before that cover runs out. Activate only an alternative you have already assessed, with a named decision owner and a checkpoint to confirm whether the fallback is working.

Business: [name]
Plan owner: [name and contact]
Backup: [name and contact]
Local emergency/technical advice: [verified contact]
Last local test: [date]
Next review: [date]

Confirmed interruption and supplier reference: [details].
Usable uncommitted stock/capacity: [amount].
Expected demand and assumptions: [amount per working day].
Indicative cover: [amount divided by demand].
Reduce service at: [trigger before cover runs out].
Previously assessed alternative: [contact, scope, lead time].
Activation authority: [person, limits].
Check first delivery/service: [time and owner].

Sources checked 27 September 2026:
Business Queensland: business recovery planning: https://www.business.qld.gov.au/running-business/risk/recovery-plan
Business Queensland: business continuity planning: https://www.business.qld.gov.au/running-business/risk/continuity-plan

Check current warnings separately. Store completed cards securely and replace outdated copies.

Sources and next steps

• Business Queensland: business recovery planning
• Business Queensland: business continuity planning

Return to business risk and continuity to choose the next planning task.