Collapse of Big Three would be a threat across the supply chain
9th December 2008 by Alex Briggs
Bob Ferrari, in his Supply Chain Matters Blog, has gotten to the heart of the issue in the current global crisis.
The future of any of the big three U.S. automakers lies both in world-class, competitive products, but also in a vibrant supplier network that can drive higher levels of innovation and time-to-market. As was pointed out, many of these U.S. based suppliers cater to more than one global brand owner, and thus already have exposure to needs for product innovation, world-class reliability and quality standards. A rapid collapse would only force Asian and other global competitors to fall back on other foreign suppliers, or find alternative means of production.
As organisations fail or teeter on the brink of failure, all of the
companies up and down their supply chain are being impacted.
Until a company or supplier actually goe bust, the full damage
to the industry is not apparent. One thing is for sure, there are no longer national or even regional solutions to the crisis.