“Supply chain” is the term we use to describe the systems of people, technology, information, resources and organisations involved in getting something from ‘idea’ to customer. In a world where we outsource more and more, even manufacturers often have complex supply chains, and that’s before they being shipping via distribution companies to the point of sale!
Considering the supply chain is particularly important to business continuity planners because it can be harder to manage potential disruptions that begin outside the organisation with our supplier. Or our supplier’s supplier. Or our supplier’s supplier’s supplier. Or… you get the idea!
Our friends at Zurich, who provide financial and insurance tell us:
- there can be hundreds of suppliers in a supply chain
- it’s important to identify the critical components in the chain for your company
- supply chain disruption can cost in the region of 1% of GDP per year
- over 35% of their customers’ disruptions cost more than $100m and can completely wipe out profit margins
- up to 40% of companies don’t survive long term supply chain disruptions
- the catastrophic disruptions are often the least likely ones
As an insurance company, they’ve taken a risk based and cost impact approach to identify best practices and they’ve developed a number of videos to offer ideas and advice.
Why? Well, Zurich offer various insurance and certification products, so its in their interests to get you talking about it! But the topic of supply chain business continuity management is often put in the ‘too hard’ pile, so we welcome anything that helps us consider supply chain continuity and hope you find this video series useful.
We’ve included their videos on supply chain insights, supply chain procurement practice, the financial case for supply chain business continuity planning and understanding your supplier record.
(If you’re reading this on your email subscription and the videos aren’t displayed, click HERE to visit the site to view the videos.)
Supply Chain Insights
We hope you found this series helpful and we’re grateful to Zurich for making them available. If supply chain continuity is of interest to you, why not check out our other supply chain articles.
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