This is largely because of the advantages found in strategies such as globalisation, outsourcing, supply-base rationalisation, just-in-time deliveries, supplier consolidation and lean inventories.
In the survey conducted for the Business Continuity Institute (BCI) Supply Chain Resilience Report 2017, only 25% of responding companies said they hadn’t experienced disruption in their supply chain within the previous 12 months. The top causes were unplanned IT/telecommunications disruption, cyber attacks and data breaches, loss of talent, outsourcer failure and transport network disruption.
Disruption in supply chains can result in a loss of productivity, increased cost of working, customer complaints and loss of revenue and, amongst other things, reputational damage and regulatory investigations.
Supply chain risk management (SCRM) is about avoiding and managing the potential impact of events occurring at any point in the supply chain, from sourcing raw materials through to end use by customers.
The potential cost savings and benefits can help justify the investment in SCRM.