Businesses That Scaled Back Supply Chain During Recession May Be Caught Off Guard

Businesses that scaled back on supply during the recession may find themselves or their suppliers suddenly unable to accommodate increased demand as the economy begins to recover, an economist and supply chain professionals warn. . . . Those costs can add up. A recent study by Vinod Singhal of Georgia Tech and Yossi Sheffi of MIT indicates that companies experiencing a supply chain disruption suffered between a 33 percent and 40 percent decline in stock price, compared with industry peers over a three year period.
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