@Risk

Over the past few weeks, I have posted several times about the importance of building close, collaborative relationships with your suppliers. Now, there’s new data that suggests that more and more organizations are doing precisely that these days, even assisting at-risk suppliers through training, on-site support, revised payment terms, and other types of financial support.

In new survey results recently released by PRTM, as many as 75% of executives say they have helped at-risk suppliers ensure deliveries, and almost half (45%) have provided financial support to suppliers in the form of revised payment terms or risk financing. PRTM surveyed more than 75 global manufacturing and service companies between April and May 2009, and then contrasted their responses with those of more than 300 global executives who participated in an earlier PRTM study, released in May 2008.

Here are a few more key findings from “Flexibility in Times of Crisis –2009; An extended edition of PRTM’s Global Supply Chain Trends 2008–2010″:

• 51% of survey respondents say that supply chain flexibility is even more critical now than it was six months ago, and as a result, many companies are working to reduce the complexity of their global supply chains. For some, that means “in-sourcing” selected activities.

• More than two-thirds (67%) are using enhanced risk analysis tools to assess supplier financial viability.

• 75% of respondents say working capital management is their key priority.

PRTM breaks down the survey results by sector and ultimately concludes that different industries are responding to current economic challenges in different ways. However, the study found that one factor appears constant: organizations worldwide are now re-working their supply chains to improve efficiencies, mitigate risks, and create opportunities for competitive advantage.

To see the complete PRTM survey results, visit http://prtm.com/StrategicViewpointArticle.aspx?id=2478&langtype=1033