Global Financial Crisis and Mass Layoff - Top Risks to Your Supply Chain

The turbulent supply chain disruptions from the last few years such as the global pandemic and the Russia-Ukraine war have resulted in high inflation, recession, unemployment, and economic instability. The global corporate debt has dramatically risen to $86.1 TN, with nearly 27% of the global non-financial debt held by Chinese companies and 37% held by the US and EU companies. Now more than ever, purchasing managers are under tremendous pressure to maintain margins and increase purchasing power, amid high-interest rates. As a result, companies of all sizes from critical industries such as high tech, automotive, life sciences, and more are laying off thousands of employees to save costs during the economic downturn. However, with the turmoil expected to continue into 2023, the big question on everyone’s mind is, what immediate steps should companies take to mitigate their supplier’s financial risk?