As a "result of information dissipation, communication and speculations," shareholder value typically starts slipping about 10 days before the date the disruption is actually announced, according to the report.
Based on its analysis of 62 supply-chain disruptions that were publicly announced from 2005 through 2011, Accenture, a management consulting and outsourcing firm, found that the share prices of companies generally don't start to bounce back until three months after the supply break has been announced.
The takeaway from the research? "The longer it takes to resolve the disruption, the more negative is its impact. Firms need to develop the ability to quickly resolve the problem and prevent escalation and worsening of the situation," according to the WEF report.
Read Full Article
Enjoy curated articles directly to your inbox.