PwC: Supply chains will up supplier scrutiny after coronavirus

Supply chains will more closely review their suppliers' financial health and diversification long after the impact of coronavirus has passed, according to more than 300 CFOs surveyed by PwC between April 6-8. More purposeful site selection for new product manufacturing, and pre-approving secondary sources for key materials and components are also on the to-do list for supply chains in the long-term, according to a report accompanying the survey. Of the financial leaders surveyed, 39% are considering changes in their supply chains as of April 8. "I think that reflects the fact that ... as companies look to China and manufacturing coming back online, they have more confidence than they did the last time around in the near term strength of the China supply chain," Amity Millhiser, PwC vice chair and chief clients officer, said on a Monday call with reporters. She also pointed out that the trend toward supply chain optimization has left many organizations heavily dependent on few suppliers or supplying countries, which has become a source of risk as the virus moves around the world.