Financial distress & failure of critical suppliers is predictable
Virtually every conference or conversation in procurement and supply chain management eventually touches on risk management. There are myriad risks that can disrupt supply chains – from natural disasters to political turmoil to labor strife, even to shipments lost at sea. And, the exposures have grown exponentially with the globalization of supply.
But of all the risks that chief procurement officers (CPOs) face, the one that is at once both potentially devastating and often entirely predictable is the financial failure of key, strategic suppliers.
The reality is, however, that procurement doesn’t have to be caught off guard. As this report shows, supplier financial instability is difficult, but not impossible, to spot. Early warning is critical. Chief risk officers, chief finance officers, CPOs, CEOs, and board members expect it. Use the right tools, analyze the right financial factors, and you can get an early warning so you can take action fast and position your supply chain for stability.