2018 BCI Supply Chain Resilience Report highlights the top threats to supply chains
- Published: Tuesday, 06 November 2018 19:43
Cyber attacks and data breaches (49 percent) are the most concerning challenge for business continuity professionals both over the next 12 month and the next five years, according to the 2018 BCI Supply Chain Resilience Report.
Other concerns over the next five years also include IT outages (41 percent) and adverse weather (39 percent). Over the next twelve months, concerns include health issues, as human illness (25 percent) and health and safety (24 percent) feature high among the top 10 future challenges.
Following the trend of 2017, the uptake of business continuity arrangements continues to grow. An increasing number of organizations embed business continuity to protect their supply chains. On the other hand, top management commitment, a key factor to ensuring resilience, declined from 2017, from 41 percent to 33 percent.
Technology employment to analyse disruptions is still low (38 percent) and those organizations that use it rely on traditional software rather than advanced solutions. However, the minority of organizations that use technology solutions are more successful at analysing incidents among their suppliers.
Other findings in the report include:
- Reporting of supply chain disruptions has increased since 2017, going from 70 percent to 73 percent, and overall the majority of organizations have consistently shown a growing level of reporting over previous years (68 percent on average).
- The number of organizations suffering a disruption in the past 12 months has decreased – from 65 percent to 56 percent. However, the number of organizations not aware about disruptions has grown – from 10 percent in 2017 to 16 percent in 2018.
- 52 percent (8 percent more than 2017) organizations reported supply chain disruptions among their Tier 1 suppliers, while an increased number of responders (+8% since 2017) admitted to not analysing the full extent if their supply chain in case of disruption.
- The threat landscape for supply chains has changed since 2017. While unplanned IT and communications outages (53 percent) remain the top cause of disruption, adverse weather (41 percent) follows up (rising from sixth place in 2017) with cyber attacks and data breaches (33 percent), loss of talent/skills (30 percent), and transport network disruption (27 percent).