Issues in companies' supply chain strategies are threatening the global economic recovery, it has been claimed.
According to Hal Weitzman, writing for the Financial Times, many large industrial companies around the world are defying fears of a "double-dip" recession by reporting signs of increasing strength in demand.
However, he explained that this could be tempered by firms' inability to secure vital components from supply chains which have been weakened by the downturn and are therefore unable to increase production in order to meet demand.
Mr Weitzman explained: "Some suppliers to large industrial multinationals that cut costs sharply in the early part of the downturn are finding it hard to increase production capacity rapidly, while many report that financing remains expensive and difficult to access."
Recently, a poll of 350 global firms carried out by PRTM found that supply chain volatility and uncertainty will affect how companies formulate their strategies in the coming months.
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