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Into the Light

Getting ready for the recovery.

By Donna Miskin | Updated on October 01, 2010

Although it doesn’t quite feel like it, the recession is officially over. Is your company’s supply chain ready to roll? Firms that chopped inventories face financial and reputational risk if they can’t meet a surge in demand once the economy really picks up, and they likely won’t get a clear signal before that happens, experts warn. Recent studies show that about 40% of businesses that experience a prolonged supply chain disruption never recover, says Linda Conrad, director of strategic business risk at Zurich Global Corporate. The credit crunch revealed that companies’ best interests rely on their key suppliers staying solvent and able to ramp up quickly when orders increase. That epiphany has set off a boom in supply chain finance programs that help support suppliers rather than take advantage of the relationships, writes senior contributing editor Richard Gamble.

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