5 Ways to Manage Supplier Closures Without Losing Control of Your Inventory

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July 14, 2025
4 min read
5 Ways to Manage Supplier Closures Without Losing Control of Your Inventory

If you’re managing supplier holidays, factory shutdowns, or Lunar New Year closures in spreadsheets or email threads, you’re not alone. Many inventory planners still rely on manual tracking for supplier availability—and it often works. Until it doesn’t.

Unplanned shortages, missed deliveries, and reactive ordering are common consequences. But there are smarter, system-based ways to manage supplier closures without losing visibility, control, or service levels. Here’s how.

Why supplier closures need more than a calendar entry

It’s easy to think of supplier closures as just another date to track. But the impact ripples far beyond a one-week shutdown. For example:

  • Lead times lengthen before and after closures due to capacity constraints.
  • Order cycles shift, affecting what you need to order now to stay covered later.
  • Internal teams and external partners need to understand the impact in advance.

The solution isn’t just noting the closure—it’s adapting your planning logic around it.

🎯 Read next: Supplier Relationship Management: The Crucial Data Your Business Can’t Afford to Miss

5 ways to manage supplier closures in your inventory system

1. Skip supplier-specific order windows

In AGR, scheduled orders let you define how often and when to create purchase proposals. If a supplier doesn’t accept deliveries during a closure, you can deselect those order weeks. The system won’t generate proposals for that vendor during that time—so nothing gets sent by mistake.

This ensures you’re not just tracking closures but proactively avoiding order misfires.

2. Adjust order timing based on closure length

A brief closure might only mean skipping one cycle. But longer events—like Lunar New Year or Tết—require more preparation. Many suppliers begin ramping down weeks before the holiday and take time to reach full capacity afterwards.

In these cases, you can use your system to generate buffer orders ahead of time—extending coverage across multiple weeks. That way, you’re not stuck scrambling to fill a gap after the fact.

📦 Learn more: Why Lead Time Analysis is the Secret Weapon of Strong Supplier Relationships

3. Manage by vendor, order, or item

Not all suppliers operate the same way. You might have a manufacturer in Vietnam closing for Tết, while a regional supplier remains unaffected.

That’s why your inventory system should let you:

  • Disable order creation by vendor
  • Extend coverage by order
  • Adjust timing by item

This level of flexibility helps you stay in control—even when suppliers operate on very different calendars.

4. Align internal teams around the closure plan

It’s not enough to update the order schedule—you need to align the business. Supplier closures affect warehouse operations, cash flow, sales, and customer expectations.

Your inventory plan should be easy to share with:

  • Sales and customer service – to manage delivery promises
  • Finance – to prepare for stock build-up
  • Warehouse teams – to plan inbound space and labour

Good systems make collaboration seamless and timely.

5. Forecast demand beyond the gap

Closures aren’t just a supply issue—they can impact demand too. For example, sales promotions after a supplier holiday may spike demand unexpectedly.

Use your demand forecasting tool to:

  • Extend coverage across the closure period
  • Factor in promotional uplift post-closure
  • Adjust safety stock dynamically for high-risk SKUs

This approach avoids over-ordering while still protecting service levels.

🤝 Related reading: Why You’re Always Chasing Supplier Answers (and How to Stop)

Common pitfalls to avoid

  • Assuming operations will restart at full speed. Many suppliers need days or even weeks to return to normal output.
  • Planning in silos. If the plan lives in one spreadsheet or one person’s head, it’s vulnerable.
  • Waiting too long to communicate. Suppliers need early visibility to plan around your needs.

Final thoughts

Supplier closures don’t have to cause chaos. With the right inventory system, you can prepare in advance, adapt your ordering logic, and communicate clearly, turning potential disruption into well-managed downtime.

Whether you’re dealing with a weeklong holiday or a month-long shutdown like Tết, proactive planning makes all the difference.

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