Panjiva, an objective information source on global suppliers, today released a startling analysis that highlights the dramatic impact of the economic downturn on global suppliers. Panjivaâ€™s analysis of the apparel industry in the second half of the 2008 reveals staggering statistics, including: The number of suppliers actively serving the U.S. market dropped over 70% in just three months; from 22,099 suppliers in July to 6,262 suppliers in October.
Of those factories still active in October, 40% are now on the Panjiva Watch List as a result of suffering a year-over-year drop of 75% or more in volume shipped to U.S. customers. The Panjiva Pain Index, a measure of the risk present in the global supply chain, stood at 43 at the end of October, up from 24 at the end of July.
According to Panjiva CEO Josh Green, â€œThese numbers paint a frightening picture of the state of the worldâ€™s suppliers. U.S. companies who maintain their customer base through the economic downturn may nevertheless find their survival threatened by the disappearance of their supplier base.â€
Panjivaâ€™s new services that help companies flag risky suppliers (Panjiva Alerts) and identify new healthy suppliers (Panjiva Search) are available now. To learn more about Panjiva Alerts and Panjiva Search, visit http://panjiva.com.
Panjiva Alerts: An Early Warning System
According to Aberdeen Researchâ€™s July 2008 survey and report on Supply Chain Risk Management, 58% of companies surveyed â€œsuffered financial loss because of supply chain disruptions.â€ To help companies identify supply chain risk before it turns into supply chain disruption, Panjiva has launched Panjiva Alerts, a set of tools that provide companies with unprecedented visibility into the health of their suppliers. By continuously tracking shipments from suppliers, Panjiva can provide companies with an Alert when one of their overseas suppliers:
Moves onto the Panjiva Watch List, as a result of suffering a year-over-year drop of 75% in volume shipped to U.S. customers
– Lands a significant new customer, thereby threatening othersâ€™ ability to get needed capacity
– Can be pushed harder on price, as a result of deteriorating customer relationships
– Is operating above capacity â€“ a sign of possible compliance violations
Companies are invited to experience the power of Panjiva Alerts by receiving a free assessment of the health of one of their existing suppliers.
Panjiva Search: Streamlining the Search for Healthy Suppliers
As buyers scramble to develop back-up plans for their unhealthy suppliers and find new, healthy suppliers, Panjiva has also launched a new, upgraded version of its robust supplier Search tool, providing new levels of visibility and transparency into suppliersâ€™ current and past partners. Thanks to technology developed by a team of MIT scientists, Panjiva can tell organizations â€œwho is working with whom,â€ enabling buyers to quickly and cost-effectively create targeted lists of potential suppliers based on recent and relevant experience working with other buyers. With the new version of Panjiva Search, buyers can finally:
– Learn which buyers each supplier has worked with, and how recently
– See a competitorâ€™s supply base
– Find out where a specific product was made
– Screen tens of thousands of suppliers and quickly identify a reasonable number of good options
According to Hudson Bay Apparel Groupâ€™s Boo Gemes, who had the opportunity to preview the new Panjiva Search, â€œThe search for good suppliers is a maddening process. This is the first tool Iâ€™ve seen that has the potential to change all that.â€
About Panjivaâ€™s Methodology
Panjivaâ€™s patent-pending technologies were developed under the leadership of Panjiva Co-Founder and CTO James Psota, a computer scientist from MIT. The technologies enable Panjiva to process huge amounts of data, cleanly and quickly.
The Panjiva Pain Index is a calculated by averaging two numbers: the percentage of suppliers previously considered â€œactiveâ€ that became â€œinactiveâ€ in the last month, and the percentage of â€œactiveâ€ suppliers that are on the Panjiva Watch List, as a result of suffering a year-over-year drop of 75% or more in volume shipped to U.S. customers. Suppliers are considered active if they have shipped to an American customer within the previous three months. The Panjiva Pain Index will be announced on a monthly basis. Initially focused on suppliers in the apparel industry, the Pain Index will expand throughout 2009 to capture market shifts for suppliers in all industries.
Panjiva is an online resource for sourcing executives to gain credible and valuable knowledge about suppliers and manufacturers around the world. By providing the most comprehensive data in an easy to use format, Panjiva informs the decisions that facilitate doing business globally. Supply chain and global production executives responsible for finding the right factories, negotiating costs and avoiding costly supply chain disruptions have been â€œflying blind.â€ Panjiva is the first and only online information source designed to provide complete transparency into overseas suppliers. Leveraging a variety of public and proprietary data sources, Panjiva is bringing new levels of visibility to the management of global supply chains. Panjiva was founded by CEO Josh Green and CTO James Psota. Earlier this year, Panjiva received an equity investment from Battery Ventures and a contingent of angel investors that included Larry Summers, the former United States Treasury Secretary and incoming director of the National Economic Council.
Version 2.0 Communications
Cody Barbierri, 617-426-2222
Jean Serra, 617-426-2222