Vigilance required to mitigate supply chain disruptions

Struggling suppliers will give off signs of trouble, but not everybody picks up on them. OEMs can mitigate production disruption by taking action early on. By Megan Lampinen

The recent dispute between General Motors and a bankrupt supplier shone a spotlight on situations in which many automotive players have found themselves at one point or another. In this instance, the US OEM found itself fighting to obtain equipment and inventory after one of its suppliers filed for chapter 11 protection and the two ended up in the courts.

GM was lucky and managed to resolve its dispute and avert any production halt, but not every company escapes without damage. While there’s no foolproof method to avoid such situations, there are ways to mitigate the impact when they do happen….

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