Managing suppliers and preventing a supply chain disruption

Third Party Credit Risk

The unprecedented rise of COVID-19 and subsequent government measures are triggering immediate pressure on businesses’ supply chains across the world. This is caused by various factors:

  • Reduced demand
    Increased unemployment and uncertainty leads to reduced disposable income.
  • Workforce disruption
    Closure of non-vital factories and limited office accessibility.
  • Uncertainty
    Depth, length and regional dispersion of economic fallout still unknown.
  • Supply chain disruptions
    Delays and shortages due to complex and international supply chains.
  • Irregular profits and cash flows
    Sporadic buying habits lead to irregular and unpredictable demand planning.
  • Instability in the financial market
    Fluctuating share and commodity prices
Managing suppliers and preventing a supply chain disruption

COVID-19 is placing stress on existing business models in the Swiss market

  • A 0.5% downturn expected in the Swiss economy. 
  • Uncertainty as investors and consumers are unsure on impact and duration.
  • Heavy impact on firms with complex supply chains (manufacturing, chemicals and luxury products).
  • Reduced foreign investment on luxury goods and leisure.
  • Reduced consumption due to closures and travel bans.

Flexibility and innovation will help businesses weather the storm

  • Adjust growth and sales forecast using artificial intelligence
  • Explore different revenue streams through business model innovation and flexibility.
  • Illuminate E2E supply chains in order to gain visibility over critical corporate suppliers.
  • Use technology to harness operational and public data to provide risk intelligence.

Where a key supplier is at risk of failure …

  • Deploy turnaround expertise to deliver rapid cash and EBITDA benefits for the supplier to stabilise the situation.
  • Whether customers, suppliers or strategic partners, quickly assess financial viability issues, identify a preferred action plan and support effective engagement with stakeholders to minimise disruption across your supply chain.
  • Solutions may range from working capital expertise, to on-site restructuring support, to fast track M&A, to secure continuity of supply.

Combating COVID-19 with resilience

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