• 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 » More Complex Supply Chains Lead to Disruptions and Financial Losses, Aberdeen Reports

More Complex Supply Chains Lead to Disruptions and Financial Losses, Aberdeen Reports

October 27, 2008
Global Logistics & Supply Chain Strategies

For more than half of the companies responding to a new study by Aberdeen Group, costly supply chain disruptions aren't just something to fear. They're a reality. Of the 138 companies included in the survey, 58 percent reported financial losses resulting from disruptions over the past year. And 99 percent said they experienced some kind of glitch. The situation is a reflection of increasingly complex supply chains, as companies seek out less expensive overseas suppliers, manufacturers and markets. In the process, they are forced to take a closer look at accompanying risks. And the sources of trouble are many. They include supplier capacity failing to meet demand (56 percent of the companies reporting supply chain disruptions), shortages or price increases for raw materials (49 percent), unexpected changes in customer demand (45 percent) and shipments that were delayed, damaged or misdirected (39 percent).

Still, not everyone was equally affected by those problems. Dividing companies into the traditional categories of best-in-class, average and laggards, Aberdeen found that the top performers were twice as likely than those at the bottom to weather a supply chain disruption with no financial loss, market-share erosion or brand damage. Metrics for identifying "best-in-class" in the area of risk management included percentage of shipments from suppliers received complete and on time, percentage delivered to customers in the same manner, change in the frequency of stockouts over the past 18 months, and change in variable distribution costs during that same period. According to Aberdeen, best-in-class companies are more likely to manage or assess a number of key risks, including infrastructure congestion, supplier and country risk profiles, fuel price hikes and non-environmental catastrophes. The ability of a company to combat risk also determines what kind of advice it receives from Aberdeen. For laggards, the firm urges them to begin thinking about supply chain risks, evaluate their supply chain infrastructure from the standpoint of visibility and information exchange, and educate staff about the danger of disruptions. For companies deemed "average," Aberdeen advises the adoption of proactive visibility measures, management of additional supply chain risk, rating of suppliers on at least a monthly basis, and better collaboration with supply chain partners. Recommended "steps to success" for companies that are already best in class include continued expansion of actively managed risks; use of advanced data analysis, risk decision matrices and statistical modeling as part of a more data-driven approach; and consideration of ways to hedge against the impact of non-controllable risks, such as currency shifts and terrorist attacks.

Visit www.aberdeen.com

RELATED CONTENT

RELATED VIDEOS

Sustainability & Corporate Social Responsibility Global Trade Management Global Supply Chain Management SC Security & Risk Mgmt Quality & Metrics Logistics
KEYWORDS Global Supply Chain Management Global Trade Management Logistics Quality & Metrics SC Security & Risk Mgmt sustainability
  • Related Articles

    Supply Chain Disruptions and Risk Still Looming: How to Create a More Resilient Supply Chain

    Supply Chain Disruption Risk: Concern Should Lead to Action

  • Related Events

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

Global Logistics & Supply Chain Strategies

TNT Logistics Sports New Name: CEVA Logistics

More from this author

Get regular updates!
Subscribe to our newsletter

Enjoy curated articles directly to your inbox.

Popular Stories

  • 1209_themarketforlogistics

    How an Investment Banker Views the Market for Logistics and Supply-Chain Tech

    Technology
  • 1206_howglobaltradersplan

    Podcast | How Global Traders Can ‘Plan for Crazy’

    Global Trade Management
  • 1210_cultureoffeargripsups

    ‘Culture of Fear’ Grips UPS: Workers Say Injuries Are Underreported

    Logistics
  • 1125_themodernfactory

    The ‘Modern’ Factory Remains a Dream for Many Manufacturers

    Technology
  • 1118_howconsumerproductscompanies

    How Consumer-Products Companies Are Wasting Their Digital Spend

    Technology

Digital Edition

55746

Subscribe today and receive the latest issue

Start Your Subscription

Case Studies

  • Energy Storage Company Saves $50 Million With Demand Planning

  • Locus Robotics Helps E-Retailer Deliver During Holiday Peak

  • 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

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