The metaphor of the global supply chain, meant to convey strength through interconnectedness, has lately come to symbolize the opposite: companies dragging each other down as one fails to gauge demand while another struggles to meet it, or to manage the cash flow needed to remain a viable part of it.
"With weak consumer demand, the entire supply-demand equilibrium is out of whack," says Frank Burkitt, national supply chain and operations practice leader at Deloitte Consulting. "Many suppliers have trouble funding their operations because they can't access working capital or a significant line of credit, and are failing as a result." On the front end, forecasting demand is more difficult than ever.
