Managing risk in the supply chain can be a daunting task. Supply chain managers increasingly realize that protecting their supply chains from serious and costly disruptions. But often they don't take action, because they are paralyzed by not really knowing how to start.
Zurich's 2014 Supply Chain Resilience Survey puts some figures on the problem:
- 73.5% of organizations surveyed said they do not have full visibility into their supply chains.
- 76% of respondents reported at least one instance of supply chain disruption last year.
- 44.4% of disruptions originate below Tier 1 suppliers.
- Loss of productivity (58.5%), increased cost of working (47.5%), and loss of revenue (44.7%) were the most commonly reported consequences of supply chain disruptions.
- 28.6% reported low mangement commitment to the issue of supply chain resilience.
Taking a step-by-step approach can help. Solid planning, carefully planned and executed, not only reduces risk but also can increase supply chain efficiency, enhancing the organization's bottom line.
Take a look at the infographic below from Arkieva to get some tips on managing supply chain risk. Let us know your best strategies for tackling risk in the comments section below.
— Hailey Lynne McKeefry, Editor in Chief, EBN