Home: Issue 9 2010 › Supplier continuity

Supplier continuity

22/12/2010 | Channel: Business

Dear Editor
Seventy per cent of businesses have been adversely affected by disruption to their supply chain over the past 12 months.

Twenty per cent took a direct hit on their reputation as a result of this third party failure, while a staggering 50 per cent lost valuable working time due to supply chain failure. These are the eye-opening findings of the BCI’s 2nd annual research project, which covered over 300 organisations in 35 countries.

For supply chain professionals, one of the most important findings is that strategies to optimise supply chains - whether supplier consolidation, outsourcing or lean manufacturing - are leading to increased levels of disruption compared with those that do not pursue such options. Business strategies to extend or optimise supply chains are clearly here to stay but these are not cost free decisions. While most organisations sit at some point between the polarities or ‘no risk at any price’ and ‘lowest cost at any risk’, understanding and managing vulnerability or ‘risk’ needs to be improved.

The survey revealed that Business Continuity Management (BCM) is increasingly being applied to better understand supply chain vulnerability and provide measures to increase resilience.

Lyndon Bird, International technical director, The Business Continuity Institute (BCI)