- Although 70% of businesses experience supply chain disruptions within the last year, 2 in 5 companies do not analyze the source of the disruption, according to the Supply Chain Resilience Report 2016 by Business Continuity Institute and Zurich Insurance Group.
- Only 41% of the disruptions occur through Tier 1 suppliers, yet recent data shows 2 of 3 businesses lack full visibility into their supply chain, RetailWeek reported Tuesday.
- The leading type of disruption experienced was unplanned-for IT and telecommunications outages at 60% of the industry. Surprisingly, cyber attacks and data breaches finished a distant third at 39% of the industry, with personnel loss finishing second, impacting 45% of the industry.
Encouraging transparency beyond the first tier of suppliers is critical not only for tracking, but also eradicating disruption.
Resolving challenges along the supply chain requires investigation into causation, and can't be overestimated in importance. Consider it akin to a short within a car's electrical system; if it is not quickly repaired, it will happen again and again. Allowing disruption within the supply chain to fester produces the same result, only in this case clients downstream will suffer as well.
Resilient supply chains are invaluable. Creating relationships with 2nd and even 3rd tier suppliers will allow for faster error tracing, and ultimately, a more efficient chain.