Authored by Pete Hodgkinson
Are you prepared for the unpredictable?
Procurement professionals manage risk every day, but a lot of risk factors are out of their control. Economic disruption, natural disasters and supplier bankruptcy can strike at any time.
A new study reports that two thirds of businesses in the EMEA region have experienced disruption to their value chains in the past 12 months. The number is even higher (70 per cent) in the UK. Surprisingly though, only a quarter of organisations have performed a risk assessment on all elements of their supply chain.
It’s crucial that organisations take the time to evaluate their supply chains for risk. Failing to prepare can quickly put a business in operational and financial jeopardy: Participants in the study reported that value chain disruptions cost an average of £450,000 per incident, and take 63 days to recover from.
When was the last time you evaluated your supply chain for risk factors?