Supply Chain Continuity in 2011

In November 2011 the Business Continuity Institute (BCI) issued the results of a survey they undertook to find out more about issues with supply chain business continuity.

They got 559 responses from 62 countries and found that 85% of respondents had suffered at least one supply chain disruption in the previous year.  40% of those problems weren’t with the respondent’s supplier; they were with a supplier of their supplier.

As we’ve come to expect, weather was the top cause of disruption (51% of the all the cases).  This was closely followed by IT and telecom outages, which came in at 41%.

In 38% of cases, it led to an increase in costs and in 32% it resulted in loss of income. 17% of respondents reported at least a whopping £1m euro bill for a single supply chain disruption incident.

Longer term consequences often go unmentioned, but the survey thought of that and asked questions.  Long term issues around shareholder concern, repetitional damage and issues with regulatory enforcers were reported.

If you’d like to read the full survey findings from the BCI you need to register with their website here to download the paper.

But what does this mean for your continuity planning?

  • Check your Business Impact Analysis documents: Have suppliers been documented where appropriate?
  • Check your Business Continuity Plans: Are issues with the supply chain included?
  • Consider your procurement processes: How do you choose your suppliers?  Are you asking great questions to check your suppliers’ continuity arrangements are good enough?   Are you asking them how they plan for their own supply chain continuity?


Have you read our article “Supply Chain Earthquakes“?

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