Most of us take the weather report with a grain of salt. How many times has the meteorologist on the evening news told us that rain is coming later in the week, yet we find ourselves soaked to the skin by the time we get home from work the next day?
Analyst Insight: Companies are starting to look at climate change more scientifically. Rather than making judgments based on their own experience, they are using external data to drive models to gauge the potential for disruption to their own supply chains - from singular events such as hurricanes to longer-term effects such as crop migration. This process helps them to understand how truly resilient they are in their ability to source, manufacture and distribute their products. - Glen Goldbach, Principal, PwC; Christoph Hahn, Director, PwC; Kelvin Harris, Director, PwC
A third (35 percent) of businesses in the manufacturing industry are extremely concerned about potential supply chain disruption, according to research released by BSI, the business standards company and the Business Continuity Institute (BCI).
Analyst Insight: There is now a false sense of security in supply chain risk management. Sixty-eight percent of companies believe they are better prepared than five years ago, yet supply chains experience an average of three material disruptions a year, according to Supply Chain Insights. Supply chain preparedness is for standard risk factors, such as financial viability, natural disasters, product quality, globalization and outsourcing. But, what about other risks and the security of supply chain? – Mickey North Rizza, VP Strategic Services, BravoSolution