Afternoon Coffee: Suppliers Take Hit in Retail Industry Shake-Up, Bosch Causes BMW Production Slowdown

AdobeStock/Ivan Kruk

As retail company after retail company announces bankruptcy, what happens to their suppliers? Hardly an enviable situation.

The Wall Street Journal reports that in the midst of the retail industry shake-up, suppliers have often been left hanging while banks with asset-based loans have been able to avoid losses. Suppliers, on the other hand, face length legal battles to receive what they’re owed.

The Brighter Side of Retail

In contrast, the e-commerce boom keeps on booming. According to the Wall Street Journal, UPS and S.F. Express, the biggest Chinese package-delivery company, have partnered to take advantage of the fast-growing direct retail market between the U.S. and China. As more American consumers buy directly from Chinese manufacturers, the latter seeks to get goods delivered faster.

Supply Chain Bottleneck

The luxury car maker BMW is seeking compensation from Bosch after a steering gear shortage from the world’s largest car parts supplier caused production to slow for BMW’s 1-Series, 2-Series, 3-Series and 4-Series compact cars, Bloomberg reports. According to Bosch, the cause of the shortage was a bottleneck at a sub-supplier: an Italian company that provides the casings for Bosch’s electronic-steering systems.

In Cybercrime News

Can we expect another round of free burritos to make up for bad press?

As it turns out, Chipotle's data breach is more serious and widespread than what was announced a month back. Customer payment data was stolen, using malware, from "most" of Chipotle's 2,250 locations between March 24 and April 18, Reuters reports. Although the malware has been removed, the breach may affect Chipotle's sales, which only recently recovered after hundreds of customers were sickened with E. coli, salmonella and norovirus in 2015.

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