Breakdown

Supply chains are showing worrying signs of strain, according to a new survey.

A sizeable share of finance chiefs are worried that supply chains are in danger of breaking down. In a poll of more than 200 senior finance executives in Europe, one-fifth have already seen at least one of their suppliers go bust. (See “Business Outlook Survey“.) More than half of the CFOs polled say that suppliers are experiencing problems, from difficulty getting trade credit to flirting with insolvency due to low order volume. In response, most finance chiefs are consolidating orders with their strongest suppliers, while others are going as far as providing loans and even direct investments to their key suppliers.

Supply chains under strain

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