Supply Chain Resilience
Category : Preparedness
The resilience of your supply chain is probably critical to the smooth and continued running of your business but the majority of business owners have no idea how resilient their supply chain is, or isn’t!
Do you know what supply chain issues might affect your business?
A recent report by the Business Continuity Institute found that:
- 60% of disruption is caused by unplanned IT or telecoms outages.
- 45% by loss of talent or skills.
- 39% by cyber attack or data breach.
Below is a graphic from the report showing the main risks to supply chains.
On reading the list some things may appear not to affect you. Earthquake/Tsunami for example may not appear to be much of a problem in the UK but the 201 tsunami in Japan caused global supply chain problems. Here is an interesting article on that event and how businesses around the world were affected.
So what can you do about it? What business continuity measures can you take to mitigate these risks? Alarmingly, just under a quarter of organisations have no BCM arrangements in place! I would imagine that small to medium sized businesses make up a majority of that figure.
Have you seen the BCP’s of your suppliers? Perhaps now would be a good time to ask them what they are going to do to ensure their Business Continuity. If they don’t have a plan you are probably going to have a problem that will affect your business, your customers and your reputation.
Here is a full copy of the report should you wish to know more.