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Harvard Business Review: In Uncertain Times, Big Companies Need to Take Care of Their Suppliers

“The consequences of past buying practices for supply chain resilience are clear. By driving production offshore, companies have ended up with far-flung supply lines subject to logistics disruptions and huge cost escalations. Transactional behavior toward domestic suppliers has weakened them, and in industries such as autos and aerospace, it has driven consolidation. This ultimately weakens OEMs’ bargaining power, while reducing the diversity of their supply base.”

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