Back-up supply chains have been described as essential to a company's operation during the predicted recession.
A report in the New Zealand Herald carries an interview with Alan Day, supply chain and procurement expert at State of Flux, who has claimed that a supplier or customer going bust could lead to another company in that supply chain losing business within a week.
"Studies show most organisations can last five days but after that customers go elsewhere and never come back. Sales will dip and never recover," Day says in the report.
Having back-up suppliers will do much to ease the transition between two companies if one supplier goes bankrupt, and could mean the difference between a supply chain hiccup and a crisis which costs customers.
It is becoming increasingly widely acknowledged that supply chains are being seen as more a central part of the cost-cutting agenda in businesses as 2008 forced many companies to reassess the outgoings in their supply chains.
Any business hoping to cut more costs in such an area could benefit from contacting a supply chain management company.
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