Danger in the Chain

From supplychainstandard.com: “Recent trends in outsourcing the manufacture of goods to distant low-cost economies have significantly increased risk within the supply chain. Distance and longer lead-times have heightened the chances of interruptions in supply, with disruptions and congestion at ports being possible risk factors. But global supply chains are set to experience unprecedented shocks to the system as buyers, suppliers and service providers battle the financial rigours of the market. Undoubtedly, some will fail.”

“Craig Neame, a parmer at international law firm, Holman Fenwick Willan, deals with the commercial fall-out from supply chain problems. He highlights some of the repercussions from the large corporate casualties that have recently occurred on the high street. “Those companies have quite a large amount of stock both in distribution centres and in transit,” says Neame, “Questions then arise as to ownership of that stock, about the rights of the outsourced logistics service providers who manage the distribution centres and perform the carriage and handling contracts, as against the customer and also, as against the vendors of the stock that is in transit or sitting in warehouses.” Retention of title clauses can make for complex situations and may become very messy, but then this is a natural consequence of a downturn. ” Danger in the Chain

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