• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • BLOG
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Most Organizations Lack 'Mature' Supply Chain Risk Management Practices, Study Finds

Most Organizations Lack 'Mature' Supply Chain Risk Management Practices, Study Finds

August 20, 2013
Canadian Underwriter

The Massachusetts Institute of Technology's Forum for Supply Chain Innovation recently released a report, titled 2013 Global Supply Chain and Risk Management Strategy, which "validated those companies with mature risk processes perform operationally and financially better. Indeed, managing supply chain risk is good for all parts of the business - product design, development, operations and sales."

The report was written in collaboration with audit and consulting firm PricewaterhouseCoopers. It was based on a survey of 209 participants whose firms have a "global footprint." Nearly a third (30.6 percent) were in automotive and industrial products, 20.6 percent were in pharmaceuticals and chemicals, 19.1 percent were in technology and telecommunications, 18.2 percent were in retail and consumer goods and 11.5 percent were in the service industries.

Respondents were asked how their firms mitigate against disruptions. A large majority (82 percent) said they create and implement a business continuity plan, 79 percent said they implement a dual sourcing strategy, 78 percent use both regional and global suppliers, 59 percent establish distribution centres in multiple regions and 48 percent use a component substitution strategy.

The researchers also asked the participants about the sources of risk to their supply chains. Multiple responses were permitted. About half (53 percent) said raw material price fluctuations were sources of risk, 47 percent identified currency fluctuations, 34 percent identified environmental catastrophes, 28 percent identified raw material scarcity, 22 percent identified geopolitical instability, 22 percent identified supplier partner bankruptcy, 20 percent identified change in technology, 12 percent cited unplanned IT interruptions and 5 percent identified telecommunications outages while only 2 percent identified cyber-attacks as sources of risk to their supply chains.

Read Full Article

RELATED CONTENT

RELATED VIDEOS

Technology SC Security & Risk Mgmt Regulation & Compliance Quality & Metrics SC Finance & Revenue Management Business Strategy Alignment Sourcing/Procurement/SRM Global Supply Chain Management Global Logistics
KEYWORDS Business Continuity Business Disruption Business Strategy Alignment Canadian Underwriter Global Logistics Global Supply Chain Management Logistics Risk Quality & Metrics Regulation & Compliance SC Finance & Revenue Management SC Security & Risk Mgmt Sourcing/Procurement/SCM supply chain Supply Chain Analysis & Consulting Supply Chain Management Supply Chain Management: Supply Chain security and Risk Management Supply Chain Risk Management Technology
  • Related Articles

    Why Does Supply Chain Risk Management Rank So Low? Most Companies Are Reactive, Not Proactive.

    Most See Value of Supply Chain Sustainability to Bottom Line, But Few Leverage Full Benefit, Study Finds

    Supply Chain Risks Continue to Trouble U.S. Tech Industry, Study Finds

  • Related Events

    Managing Risk Associated with People Connected to your Third-Party Relationships

    Why IBP May Save Your Supply Chain & How to Run It By This Spring

Canadian Underwriter

Most Organizations Lack 'Mature' Supply Chain Risk Management Practices, Study Finds

More from this author

Get regular updates!
Subscribe to our newsletter

Enjoy curated articles directly to your inbox.

Popular Stories

  • 1115_chinarareearthminerals

    Podcast | Can China’s Monopoly on Rare Earth Minerals Be Broken?

    Sourcing/Procurement/SRM
  • 1111_makeorbreakblockchain

    The Element That Can Make or Break Blockchain for the Supply Chain

    Technology
  • 1125_themodernfactory

    The ‘Modern’ Factory Remains a Dream for Many Manufacturers

    Technology
  • 1118_howconsumerproductscompanies

    How Consumer-Products Companies Are Wasting Their Digital Spend

    Technology
  • 1122_forcedlaborinindia

    Podcast | This Campaign Is Out to Stop Forced Labor in India

    Sourcing/Procurement/SRM

Digital Edition

55746

Subscribe today and receive the latest issue

Start Your Subscription

Case Studies

  • Manufacturer Slashes Shipping Costs With AI Packaging Solution

  • Apparel Retailer Saves $45 Million With Reverse Logistics Solution

  • QuestaWeb Configures Fragrance Company’s Complex Procedures Into Its Advanced FTZ Software

  • Business Turnaround: Integrated Business Planning as a Management Tool

  • How a 3PL Reduced Rejected Deliveries Using LoadProof

Visit Our Sponsors

  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • The Magazine
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • 100 Great Partners Form
  • Resources
    • Newsletters
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing