Economy
September 24, 2013
Are Low Prices the Double-Edge Sword that Threatens Your Supply Chain?
Written by John Packard
“Today I am going to be Chicken Little” is how John Anton of IHS Global Insight began his presentation at their 7th annual Pricing & Purchasing Summit. The reason behind his comment was his forecast for 2014 called for a modest rise in steel prices in early 2014 before flattening out. The Chicken Little part comes in when he told those in attendance, “If prices don’t go up you will need to worry about your supplier’s viability.”
He also pointed out when there are interruptions in the supply chain it always leads to higher prices and more volatility.
