|
Companies Suffer Loss From Supply Chain Disruptions
By Mike Sachoff
Staff Writer
Article Date: 2008-09-19
Growing global operations are forcing companies to more pro-actively evaluate and address their supply chain risks.
Over the past 12 months companies have reported a number of supply chain disruptions with upstream disruptions happening most frequently, closely followed by the inability to manage unexpected demand fluctuations.
As a result, 58 percent of companies have suffered financial losses from supply chain disruptions over the past year, according to a survey from the Aberdeen Group. Most companies still need to invest in building a resilient global supply chain. Only 12 percent of the 138 companies surveyed indicated they had a risk -resilient global supply chain.
Currently, research study participants are citing increased supply chain vulnerability as a result of growing global operations (58%) and the increasingly volatile global economy (55%) as the top two challenges for focusing on supply chain risk management.
The Aberdeen Group recommends improving supply chain management by quantifying the damage from past disruptions and finding the biggest vulnerabilities. It also says to evaluate your supply chain infrastructure and ask if there are processes and technologies in place to provide the necessary level of visibility, faster information exchange and escalation of issues and disruptions.
Make your staff aware about the dangers of supply chain disruptions. Train employees on disruption response procedures so the impact can be minimized.
About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.
|
|
