1/5/2009

According to a report from PricewaterhouseCoopers, supply chain risks can threaten shareholder value. The study examined 600 companies that experienced supply chain disruptions in the time frame of 1998 to 2007. The companies' stock prices become more volatile, return on sales and assets dipped, and average shareholder value fell. "The traditional emphasis in supply chain management has been to squeeze out costs," said Dave Pittman of PwC. "But the very practices that drive costs out also open the door to increased risks."

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