Supply Chain Risks
October 14, 2006 by Splatty
Filed under Supply Chain Management
Robert Malone of Forbes.com (one of my favorite writers on supply chain management) has written an excellent article about the risks associated with today’s supply chains entitled, “Growing Supply Chain Risks”. In the article he discusses a recent study by Accenture that details the risks faced by companies in today’s global marketplace. Although the report includes input and interviews from companies with an annual revenue of $1 billion or greater, I’m sure that the risks described are pertinent to virtually every company involved in global trade. In the report, 3 out of 4 executives said that their company has had at least one major supply chain disruption in the past 5 years which required at least one week to recover from and in some instances up to one year. So what are the biggest supply chain risks faced by companies today? According to the report the most significant risks are as follows:
50% anticipated the risk of raw material supply disruptions.
36% expected the risk of import operations and customs delays.
36% anticipated service failures because of longer supply lines and lead times.
35% expected risks associated with geopolitical instability.
35% anticipated risks involving a shortage of skilled resources.
30% anticipated risks associated with terrorist infiltration of cargo.
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