For years now, manufacturers and retailers have been outsourcing to cut costs and improve efficiency. A whole industry has grown up to help them drive production, hone their supply chains, minimise lead times and ensure deliveries are just what they need, just in time.
The result, according to Mark Wing - a Partner of Clyde & Co - in his article for Insurance Day, is many manufacturers and retailers are no longer competing on their own merits. Their reputation and their ability to do business are almost entirely dependent on the competence of a small number of key suppliers and, in turn, the businesses that supply them, all of which are operating on wafer-thin margins.
But businesses can suffer huge losses as a result of supply chain disruption, and the insurance industry should so more to improve resilience.
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