Global supply chain financial risk is at its highest levels since the last financial crisis. As a result, buyers for Fortune 500 companies are more interested than ever to foster durable relationships in these volatile financial times.
At the same time, global supply chains are growing and becoming more complex, creating a complicated task for buyers to continuously identify new suppliers that they can count on in a face-paced evolving environment. So how are businesses adapting to these challenges? According to a 2014 study by the University of Tennessee’s Global Supply Institute, the most prevalent strategy to mitigate supply chain risk is to select financially strong suppliers.
Large corporations with global supply chains will be increasingly looking to the financial health of their suppliers to minimize the risk of disruption, and a high portfolio score is sure to catch the eye of these buyers.