Keeping the Disruptions out of your Supply Chain

Recently, the Business Continuity Institute published the findings of their 5th annual supply chain resilience survey. The goal of this international survey, involving 519 respondents from 71 countries, is to “…consider the origin, causes and consequences of supply chain disruption.” Here are a few fascinating statistics:

–          75% of respondents still do not have full visibility of their supply chain disruption levels. Only 25% coordinate and report to gain an enterprise‐wide view of disruption. This is unchanged from 2012

This statistic is mind-boggling. Supply chain visibility is critical, and while 100% visibility may be difficult to achieve, at a minimum supply chain managers should have full visibility of disruptions and some type of reporting tools to learn from errors. There are so many technological options to aid in manufacturing, distribution, and inventory management.

–          The primary sources of disruption were unplanned IT or telecom outages, with 55% stating they experienced high or some impact from this type of disruption. This was followed by adverse weather (40%) and outsourcer service provision failure (37%)

All three of these issues are out of the control of the supply chain management team. The best way to cope with external issues is to have a well-established Business Continuity Plan and, in the wake of an emergency, a well-tested Disaster Recovery Plan.

–          41% stated that customer complaints were received as a consequence of disruption, an increase from 35% in 2012, bringing it into second place behind loss of productivity (55%) as the primary consequence of supply chain disruption

A disruption, by definition, is the source of a problem, so the fact that a loss of productivity is rated as the highest consequence should come as no surprise. The growth of customer complaints is a worrisome trend.

Every supply chain, like every other operation, will have its unexpected disruptions. SBS Group can help you prevent (or recover quickly from) disruptions. The supply chain is a significant process in any company and can provide immeasurable time and cost benefits with the right strategy in place. Contact us for more information.

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