Nearly one in ten organizations are not aware of who their key suppliers are, leaving them open to severe disruption as they are unable to manage their supply chain effectively. That is according to a new report published by the Business Continuity Institute and supported by Zurich Insurance Group.
The Supply Chain Resilience Report highlighted that seven in ten organizations admit to not having visibility over their full supply chain, and as the survey also revealed that half of disruptions occur below the preliminary tier 1 supplier of goods, this makes it extremely difficult to establish where an organization lies within its suppliers’ priorities.
This could have major consequences when it comes to managing the supply chain and ensuring that disruptions are minimised, which is particularly important given that the report also found that 74 percent of organizations had suffered at least one disruption during the previous twelve months and that 14 percent had suffered cumulative losses of at least €1 million as a result.
Other findings of the report include:
- Unplanned IT and telecommunications outage (64 percent), cyber attack and data breach (54 percent) and adverse weather (50 percent) are the top three causes of supply chain disruption. New entries to the top ten are: product quality incident (8th), business ethics incident (9th) and lack of credit (10th).
- The top five impacts of disruption are loss of productivity (58 percent), customer complaints (40 percent), increased cost of working (39 percent), loss of revenue (38 percent) and impaired service outcomes (36 percent).
- One third (33 percent) of respondents report high top management commitment to supply chain resilience, increasing from 29 percent last year.
- 68 percent of respondents report having business continuity arrangements in place to deal with supply chain disruptions.
Obtain the report after registration here.