Even minor disruptions need addressing
Even minor supply chain disruptions can cost businesses thousands of dollars. Yet the majority of firms fail to protect themselves.
A recent survey of British companies conducted by Zurich Insurance found that the average mid-sized corporation lost £200,000 a year due to supply chain disruptions. Most disruptions were minor, according to the study, but even high-profile events fail to get 55 percent of companies to take precautions.
“The lack of preparation and business continuity planning amongst businesses, particularly those who are highly dependent on suppliers, is alarming," said Nick Wildgoose, global head of supply chain at Zurich. "Businesses need to map out their key suppliers and plan for the worst case scenario, or suffer significant disruptions and associated financial impacts."
Chances are good that a business will experience some sort of disruption. According to the study, 88 percent of mid-sized organizations have suffered a loss. Firms that plan for the eventual disruption will be able to quickly adjust freight management and order fulfillment procedures in the event of an emergency. Taking the time to plan can prevent companies from losing sales or damaging their reputation.
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File Under: General Supply Chain