Research published by Grant Thornton indicates that 12 food and drink companies failed in the third quarter of 2013, compared to 21 failures in the second quarter.
Apparently this is a good result compared to the third quarter of 2012 when 35 food and drink businesses failed.
To me these still seem like a very high number of food and drink businesses to be failing. The impact of these failures on suppliers who end of with bad debts and on customers who end up with service level problems is hard to quantify.
When looking at supply chain risk everyone is going to have to pay closer attention to financial and commercial risks, but as I have found with some recent experience some of the “blue chip” credit rating companies can provide some very dubious information.
More challenges in the world of supply chain risk management!