Automotive chip manufacturer Melexis Microelectronic Integrated Systems NV has claimed that the structure of a supply chain is often responsible for much of the problems associated with a sudden drop in the number of orders.
Suggesting that companies can do much to protect themselves from the negative side effects of dropped orders - a phenomenon likely to increase throughout the financial downturn - Melexis has hinted that supply chain management could be the key to more stable management.
"The drop in sales in Q4/08 with an expected continuation of this trend into Q1/09 has more to do with industrial dynamics than consumer demand," said a statement from Melexis, which argued that small drops in the number of vehicles sold on the forecourt could result in much greater falls in the amount of production seen at the other end of the supply chain.
Companies hoping to reduce the threats which face their own supply chains could benefit from contracting a third party supply chain management company.
Supply chain management could not only reduce exposure to risks but also reduce shipping costs and a company's CO2 emissions.
Manufacturing and Industrial:
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