Purchasing

Richard G. Weissman

Those Risky Supply Chains
October 13, 2008

Risk in the supply chain has probably never been greater, especially with the current economic crisis. Read a bit deeper and you realize it is not just a Wall Street and Main Street thing in the United States. There are a number of countries on the verge of economic collapse. Look no further than Iceland for an example.

And in the midst of all of this economic turmoil, you might have missed the story about Chinese tainted-milk. Seems that melamine is never far from the food supply. Some of that milk product has found its way into the food chain in the United States as well.

A recent McKinsey Quarterly report showed an increased worry about supply chain risk. Three quarters of executives surveyed say that supply chain risk has increased during the past five years. Some reports, like this one in the Economist, are saying that outsourcing is also affected by the economic crisis. 
 
Perhaps it is time to bring some of those parts and services home?

Posted by Richard G. Weissman on October 13, 2008 | Comments (0)