By Rebecca Ellinor
As we report in the latest issue of SM, corporate insolvencies are on the increase and a dramatic upswing is anticipated.
A rising number of companies are going under, and it’s crucial for buyers to try to mitigate against the risk of their suppliers folding.
It means, as we report in the news pages (“Buyers focus on risk management”), that purchasers and vendors alike are looking less at performance and more at security of supply and the financial stability of the firms they do business with. Diversification could be a word we hear more and more as supplier rationalisation is dropped for the time being.
I’d argue that supplier relationship management has never been so important as it is now with buyers and suppliers relying on one another to stay afloat. But what has been your experience? Are you putting more of a focus on this area, or less as you come under pressure from the bosses to slash costs?