Most companies still unprepared for supply chain disruptions: New report

Visibility is a pretty hot topic right now as companies scramble to gain oversight of end-to-end supply chains that span the globe. With supply chain disruptions and other potential risks continuing to make headlines, the race is on to create reliable methods of getting goods and services from Point A (origin/raw materials) to Point B (end user).

Achieving that goal isn't getting any easier, according to the Business Continuity Institute (BCI) and Zurich Insurance Group report, Supply Chain Resilience 2013.  The organizations report that 75 percent of companies lack full visibility over their supply chain disruption levels. Just 25 percent coordinate and report to gain an enterprise-wide view of disruption and 75 percent say they experienced at least one incident that caused disruption.

The primary sources of disruption were unplanned IT or telecom outages, with 55 percent of respondents stating they experienced high or some impact from these sources. Adverse weather (40 percent) and outsourcer service provision failure (37 percent) rounded out the list.

BCI and Zurich Insurance Group point to technology outages, burdensome regulations, and supplier failure as the "big three" supply chain risks. About 75 percent of firms reported at least one supply chain disruption during 2012, with 42 percent of the disruptions occurring because of issues that occurred with their suppliers' vendors. The negative impacts of such disruptions include loss of productivity, a larger number of complaints from customers, increased costs, impaired service outcomes, revenue losses, and brand damage. 

Top management's commitment to supervising the supply chain is either inconsistent or nonexistent, say sixty-two percent of respondents.

"It is clear from the results of this survey ...