Earlier this summer, the ink on the Hertz post-mortem began to dry.
The company, and its underlying assets, were in freefall, prompting analysts, speculators, and carrion collectors to wonder whether it would live beyond Chapter 11—and triggering the share price yo-yo we’ve seen throughout June and July.
New RapidRatings Stress Test provides early warning for Supply Chain Managers—there is still time to select suppliers with strong financial health.
How Financial Discussions Drive Better Supply Chain Decisions
If there’s one thing that the current COVID-19 crisis has reinforced, it’s that while change is constant, it can quickly veer off in unexpected and disruptive directions. The “Cash is King” business logic figures in even more prominently in times of business turmoil and tightening access to credit; i.e., how do you know which of your suppliers is going to come up short? Without accurate and predictive analytics on the financial health of suppliers, many companies are struggling to know how their supply chains will perform.
It is increasingly clear that the economic impacts of the current pandemic will be long lasting. Global supply chains will continue to be disrupted as much by the effects of macroeconomic frailty and declines in global financial health (tracked here) as they are by individual companies’ fortunes.
Organizations worldwide are reacting to the COVID-19 pandemic in many ways, with the majority enacting some form of pandemic response policy. So, it is with great urgency that prudent organizations engage directly with third-parties to ensure operational resiliency. This is necessary to protect your business and customers. As a best practice, communicate your COVID-19 response policy and provide frequent updates to customers and third-parties.
This guide provides guidance to help focus your dialogue with suppliers and third-parties.