Executive Briefings

Tackling the Risks of Longer Supply Chains

The rush to outsource manufacturing, especially to China, has presented suppliers with a whole new series of potential problems. Bob Shecterle, vice president and group director of supply chain research with Aberdeen Group, talks about how companies can mitigate the risks that accompany longer supply chains. Companies must deal with the issues up front. They must have alternative plans in place, in the event of natural disasters or other types of disruptions. According to Shecterle, 99 percent of companies surveyed by Aberdeen experienced some kind of supply-chain disruption in the prior 12 months, and 58 percent said the incident had a financial impact. He notes the growing popularity of "near-shoring" strategies, whereby companies give up some measure of cost advantage in favor of better proximity to markets. [Run Time (Min): 10:58]


The rush to outsource manufacturing, especially to China, has presented suppliers with a whole new series of potential problems. Bob Shecterle, vice president and group director of supply chain research with Aberdeen Group, talks about how companies can mitigate the risks that accompany longer supply chains. Companies must deal with the issues up front. They must have alternative plans in place, in the event of natural disasters or other types of disruptions. According to Shecterle, 99 percent of companies surveyed by Aberdeen experienced some kind of supply-chain disruption in the prior 12 months, and 58 percent said the incident had a financial impact. He notes the growing popularity of "near-shoring" strategies, whereby companies give up some measure of cost advantage in favor of better proximity to markets. [Run Time (Min): 10:58]