by Jim Wetekamp
As published in Supply & Demand Chain Executive
Economic risk is challenging to predict and anticipate, but there are steps companies can take to help protect their supply chain and business.
The short-term economic impact of the coronavirus disease (COVID-19) pandemic is proving to be far worse than the 2008 financial crisis. The International Labor Organization (ILO) estimates global cutbacks equivalent to nearly 200 million full-time workers in the next three months.
The International Monetary Fund (IMF) anticipates negative per capita income for over 170 countries.
Shelter-in-place orders, massive consumer behavior changes and unprecedented manufacturing slowdowns are causing widespread supplier financial distress. And, a spike in “force majeure” declarations, where unforeseeable circumstances prevent contract fulfillment, has companies scrambling.
The question is: How much worse will this get? And, how long will it last?
