New Study Highlights Supply Chain Risks

(Canadian Transportation & Logistics)

A new study by the Aberdeen Group research firm has revealed that 99% of companies surveyed have suffered a supply chain disruption over the past year.

Those disruptions resulted in financial losses in 58% of the cases, the study found. As a result, Aberdeen says there are major risk management gaps within the supply chain.

“Growing global operations are forcing companies to more proactively evaluate and address their supply chain risks. Companies are sourcing from and selling to more new regions, often adding new carriers, forwarders, logistics, and distribution partners to their network. At the same time, customers are continuously demanding improved service levels,” said Viktoriya Sadlovska, research analyst, Aberdeen. “These trends, coupled with increased security concerns that have imposed a new level of regulation on global shippers, are driving firms to increase their focus on supply chain risk management and adopt new processes and technologies to make their supply chains more risk-resilient.”

The most frequent types of supply chain disruptions were: supply capacity didn’t meet demand, 56%; raw material price increases/shortages, 49%; unexpected changes in customer demand, 45%; and shipment delayed/damaged/misdirected, 39%.

The study found that best-in-class companies were much more likely than average companies (or laggards), to manage and assess: logistics congestion and capacity; risk profile of suppliers; fuel prices; risk profile of countries; and non-environmental catastrophic events. To read the full report, go here.