Be Careful What You Wish Fo

Logic, like whiskey, loses its beneficial effect when taken in too large quantities.- Lord Dunsany

A recent article in Plastics News highlighted one of the major concerns we’ve been hearing from our clients for some time now suppliers cut so much during the downturn that they will not be in a position to meet the increase in demand that will come with economic recovery.

Bob Scocia, vice president of global purchasing for General Motors was quoted as saying “A concern I have is, as you look at the supply base, did we take too much out? Are we equipped for the rebound?” Suppliers will need to find a way to finance the capacity and working capital increases required as the economy recovers. OEMs and Tier 1 suppliers can do their part by supporting their suppliers with collaborative approaches like Supply Chain Finance.