Brexit more disruptive to supply chains than natural disasters and cyber attacks combined for UK businesses
- Published: Wednesday, 26 June 2019 06:53
Uncertainty over Brexit has caused more disruption to the supply chains of UK companies than natural disasters and cyber attacks combined, finds a report by connected planning specialist Vuealta. A survey for ‘The Future of the Supply Chain’ report found that 50 percent of UK business decision makers felt that Brexit uncertainty had negatively impacted their supply chain in the last five years.
In comparison, just over a fifth (22 percent) had suffered from supply chain disruption due to a cyber attack, and 19 percent from a natural disaster. This was despite the fact that studies suggest extreme weather events have increased in the last six years, and a major cyber attack cost a global logistics business hundreds of millions of dollars as recently as 2017.
Other factors said to have caused a negative impact were through the failure of a single supplier (30 percent) and spikes in demand overstretching supply chain capacity (28 percent). The report also found that a fifth of respondents thought customers would feel the impact of a supply chain failure within a day, giving them little time to fix issues when they arise.
The survey found that almost a fifth of respondent’s businesses (19 percent) have a supply chain that encompasses more than 30 suppliers, reflecting an often complex network to manage, particularly in times of disruption or change. The findings also demonstrate that business leadership often does not understand the potential impact on their supply chain, whether disruption be caused by a cyber attack (42 percent), political or market uncertainty (47 percent) or a natural disaster (43 percent).
Censuswide, on behalf of Vuealta, surveyed 500 business decision makers at UK companies with over 250 employees that have a supply chain in June 2019.