Suppliers are the lifeblood of many organizations. Regardless of what they are providing – a product, a service, or a combination of the two – companies depend on contractors and suppliers fulfilling their contracts.
While the symbiotic relationship between companies and their suppliers drives operations, that mutual reliance also introduces business risk. In a MIT-PwC survey of 209 companies with a global footprint, more than 60% noted that disruptions within their supply chains had led to a 3% or more drop in the respondents’ financial performance.
This white paper will discuss:
- Why assessing supplier financial stability is important
- The consequences of failing to review suppliers
- Tips to expose and evaluate financial stability