Supply chains on notice: how to avert a meltdown

Hosted by Ernst & Young LLP Transaction Advisory Services

How will you know if a supplier is failing? And what are your options averting breakdown or at least minimizing the damage? In the past, companies usually had ample time to detect and respond to a failing supplier. But today's financial turmoil is engulfing suppliers in weeks or even days. Moreover, at a time where entire sectors are failing, backup plans developed in better times are proving ineffective. Is your supplier in danger of imminent collapse? Would a cash infusion carry the entity through the crisis? Is there a need to begin preparations to protect your interests in the event a critical supplier files for bankruptcy protection?

Companies can avoid being blindsided by taking immediate steps to reassess the state of their supply chain. Early warning of impending failure is critical, but so is the ability to rapidly and accurately assess a supplier's true condition. This requires a range of skills including sophisticated financial statement analysis, operational and supply chain analysis and appropriate legal analysis and advice.  It is only through appropriate and expedient preparation that a company can determine the steps needed to avoid or minimize potentially catastrophic supply chain disruption.