Supplier tracker says buyer beware
Panjiva, a company that collects information on global manufacturers, on Wednesday unveiled its updated Manufacturer Watch List.
The Watch List 'helps U.S. buyers across a wide range of industries manage the risk of doing business globally by distinguishing between risky manufacturers and healthy suppliers of goods and materials,' the company said.
To be added to the Watch List, manufacturers must suffer a 50 percent or greater decline in volume shipped to American customers in the most recent three-month period, versus the same prior-year period.
Panjiva said it analyzes U.S. Customs data on shipments from significant overseas manufacturers to significant U.S. buyers — those who send or receive 10 or more shipments a year.
According to its research:
' Nearly half of significant buyers (47 percent) have done business with a Watch List supplier within the last six months.
' More than one-third of significant buyers (38 percent) have done business with a Watch List supplier in the past three months.
' More than a quarter of all significant manufacturers (28 percent) are on the Watch List.
'These numbers reveal that a startlingly high number of U.S. companies are doing business with troubled manufacturers,' said Josh Green, Panjiva chief executive officer. 'Unfortunately, many of these buyers may not even be aware of the risk they're facing. As the economy worsens, it's essential that U.S. companies move quickly to identify which of their suppliers are at risk, and which are healthy, so as to avoid supply chain disruptions.'
Panjiva said it analyzes waterborne shipments to U.S. customers, tracking manufacturers that are serving the American market. For each manufacturer, Panjiva tracks changes in volume over time with the results released on a monthly basis.
Supplier tracker says buyer beware
