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Supply Chain Resilience 2013 survey results

Research by the Business Continuity Institute has looked into supply chain business continuity issues. In a survey of over 500 business continuity professionals from 71 countries, 75 percent of respondents reported that they did not have full visibility of their supply chain and that 30 percent did not know where they fit into any of their suppliers’ priorities. Only 12 percent knew where they fit into all of their suppliers’ priorities.

The potential for an incident was demonstrated by 75 percent of respondents recording at least one supply chain disruption during 2012 with 42 percent of this disruption originating below the immediate supplier. The cost of this is clear as 15 percent experienced an annual loss in excess of €1 million while 9 percent experienced a single event that resulted in a loss in excess of €1 million.

The key issue holding supply chain business continuity back is that 62 percent of respondents felt that top management commitment to managing the supply chain is inconsistent or totally lacking.

Supported by Zurich and also by the Chartered Institute of Purchasing and Supply (CIPS), the report concludes that disruptions continue to have a significant impact on business performance and that the problem is not being effectively managed.

Further findings from the report include:

  • The leading impact following a disruption is loss of productivity with 55 percent experiencing this in the last year. 41 percent reported customer complaints and 33 percent experienced an increased cost of work and service outcome impaired;
  • The biggest risk to the supply chain over the next 12 months was reported to be technology (23 percent) followed by regulations (17 percent);
  • The leading cause of supply chain disruption is unplanned IT or telecom outages with 55 percent of organizations surveyed experiencing some or high impact disruption as a result, followed in second place by adverse weather, experienced by 41 percent of firms, then outsourcer service failure at 37 percent;
  • 49 percent of respondents state that half or less of their key suppliers have business continuity arrangements in place for their own needs.

Read the survey report (PDF).

•Date: 7th November 2013 • World •Type: Article • Topic: BC statistics

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