There's an illustrative example in the UK right now.
A meat supplier called Russel Hume has just gone out of business and their product pulled from major chains.
Basically, they ordered meat according to their expected needs only to suffer a downturn in expected sales. So they cut future orders but had a glut of stock which they tried to use over an extended period. Meat has a lifetime associated with it. (Although it can be extended slightly if you pay for bacterial analysis to re-certificate it).
It appears Russel Hume pushed the margin too far.
That's what even a small downturn in your supply pipeline can do.