10Minutes on supply chain risk management

In this issue of 10Minutes, PwC explores how global supply chains are being tested by major upheavals in the world economy. The financial crisis is taking a heavy toll on worldwide manufacturing activity, and with credit becoming tight and consumer demand collapsing, bankruptcies have risen at an alarming rate. Highlights

  • Supply chains, already coping with pressures such as product recalls, are now also under severe economic stress and more vulnerable to disruptions.
  • Supply chain disruptions cause serious damage to profitability, shareholder value, and reputation.
  • A few suppliers make the biggest difference to the bottom line and brand. These critical relationships must be recognized and nurtured.
  • Companies should analyze critical suppliers’ financial and operational metrics to develop leading risk indicators. This will help to identify and even prevent potential disruptions

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