Global supply chains not ready for challenges
Nearly half of companies with global supply chains say they fear major disruptions in their ability to source, produce and ship goods around the world, but they’re not doing much to prevent it, according to a new survey sponsoredby UPS. Some 47 per cent of companies say they need to pay more attention to risk […]
December 1, 2008
Some 47 per cent of companies say they need to pay more attention to risk mitigation compared to just 16 per cent that believe they pay an adequate amount of attention. As a result, only 38 per cent of those surveyed rate the resilience of their supply chain above average, while a full 42 per cent say the expansion of their global supply chains has outpaced their ability to managerisk.
The global survey of nearly 350 senior executives was released recently by UPS and the Economist Intelligence Unit. The survey itself was supplemented with interviews of academic experts and leading supply chain practitioners.
“Businesses appear to be increasingly vulnerable to supply chain disruptions that can have a catastrophic impact on business performance,” said Dan Brutto, president, UPS International. “Success in the global economy depends in large part on building successful risk mitigation strategies that can turn a resilient supply chain into a competitive advantage.”
“Although some companies are taking sensible precautions to address risk, too many firms are leaving themselves open to unanticipated dangers,” said Brutto.