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The effects of brand reputation on supply chain risk

The financial crisis has left the world in turmoil. Slowly but surely, the effects of one bankruptcy here and one insolvency there ripples through the system. Suddenly, what used to be solid businesses lose their long-term suppliers or customers. The latest to be hit is the Swedish automobile maker SAAB, who in the wake of the GM/Detroit crisis filed for restructuring in order to avoid full foreclosure. SAAB owes money to some 1400 debtors, and rumors have it that some suppliers have stopped deliveries because of delinquent payments, prompting others to do the same, causing production to stall…

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