Every business is dealing with it’s own financial viability questions these days.  But, with supply chains really being supply networks today, how well do you know your suppliers?  Are you suppliers on solid financial footing?

There’s some great insights on a couple of blogs.  On Supply Excellence is a post entitled “Are you asking your suppliers the right questions?“  Katie states “you simply cannot expect your current and potential suppliers to be forthcoming about their situation.”  I think she’s right.  Not only do most people not want to indicate they are in trouble, but many companies don’t leave skid marks before they end head first into the wall.  She then goes on to provide some good starting questions you should be asking.

On his blog Supply Chain Matters, Bob Ferrari provides some insight into the extent of the problem in his post “Expect more supplier financial defaults – but some optimistic news.”  Bob starts by saying that Moody’s Investors Service recently reported the highest monthly number of companies in default since the Great Depression.  The silver lining may be that the original predictions have been moderated a bit.  But, of course, the only number that matters to you is your number – the number of your suppliers that default and what it means to your business.

Are you comfortable with the level of due diligence you’ve done?  Does your supply chain risk management plan sufficiently take these risks into account?

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Tags: Collaboration, Supply chain risk management
Posted in Supply chain collaboration, Supply chain risk management
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