Supply chain video: Managing Supply Chain in a Tough Economy (Part 2)

Filed in archive Supply chain video on February 28, 2009

This is the second part of the video from Rob Handfield, Professor of Supply Chain Management at North Carolina State University. In this part he talks about the results of the survey the recently did among supply chain managers. The statistics from their survey shows 60% of companies plan to keep their scm experts and maintain the level of training. However, on the supply base few companies were having discussions with their suppliers to see what are their problems and financial challenges and find solutions to maintain a sustainable relationship.



Handfield discusses that the same pattern is observable on the demand side. Many banks don't give line of credit to small companies, not because they have problems but because that's their policy right now. This has resulted in many of those companies not being able to buy components and therefore bigger players are also affected. Handfield mentions probably one way to solve this in this period is to give these small companies more business...