‘Financial checks’ urged for suppliers_2
17 August 2012
Land Rover’s decision to bail out a debt-stricken major supplier has shown that risk management should now be a priority for all purchasers, according to a leading supply chain academic.
Peter Cooke, professor of automotive industry management at the Centre for Automotive Industries Management, Nottingham Trent University, said: “Purchasers should be running financial hygiene tests on their major suppliers, especially if they are single-source deals.”
Last week, Land Rover paid a figure - said to be up to £16 million - that its single-source...