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.
Kim Andreasson, senior editor at the Economist Intelligence Unit and the editor of the report, points out that companies today already are more vulnerable as a result of having created tighter and leaner supply chains. “A lean organisation is a requirement for competitiveness, but that can also expose a business to an increasingnumber of risks,” he adds.
