Executive Briefings

Two-Thirds of Firms Have Supply Chain Visibility

Supply chain disruptions have cost one in three organizations more than €1m ($1.06m) in the last year, according to a report. "The Supply Chain Resilience Report," published by the Business Continuity Institute and supported by Zurich Insurance Group, said the overall number of organizations experiencing supply chain disruptions fell from 74 to 70 percent.

Two-Thirds of Firms Have Supply Chain Visibility

However, organizations that did suffer disruptions suffered more of them, with the percentage of organizations experiencing at least eleven disruptions during the year increasing from 7 to 22 percent.

Increased costs were linked to significant increases in the amount of lost productivity, the increased cost of working, customer complaints, impaired service outcomes, damage to brand reputation and loss of revenue.

The survey found 43 percent of organizations do not insure these losses and so bear the full brunt of the cost themselves.

It also looked at the reason for the increase in the number of disruptions and found that fewer organizations are maintaining adequate visibility over their supply chain, with 72 percent doing so in 2015 compared to 66 percent this year.

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However, organizations that did suffer disruptions suffered more of them, with the percentage of organizations experiencing at least eleven disruptions during the year increasing from 7 to 22 percent.

Increased costs were linked to significant increases in the amount of lost productivity, the increased cost of working, customer complaints, impaired service outcomes, damage to brand reputation and loss of revenue.

The survey found 43 percent of organizations do not insure these losses and so bear the full brunt of the cost themselves.

It also looked at the reason for the increase in the number of disruptions and found that fewer organizations are maintaining adequate visibility over their supply chain, with 72 percent doing so in 2015 compared to 66 percent this year.

Read Full Article

Two-Thirds of Firms Have Supply Chain Visibility