Updated: Mar 25, 2022
Early in the COVID crisis, companies just froze up and lean supply chains’ risks were dramatically exposed. Price became almost meaningless in the face of severe shortages of key inputs. Aggressive, often private equity owned companies squeezed suppliers for flat discounts and extended payment terms. As the economy bounced back, these short-term measures backfired as the supply chains were as vulnerable and undiversified as before, but with broken or strained supplier relationships.