riskmethods, a leader in supply chain risk management, in conjunction with Supply Chain Dive, announced the release of a new survey assessing the impact of supply chain disruption and how organizations are mitigating that risk. The survey found nearly four-in-five (79%) respondents report 4% or more of their revenue was lost to supply chain disruptions over the past three years.
The findings highlight the critical nature of the supply chain and the opportunities that come from better monitoring and management of supply chain risk.
“Procurement and supply chain professionals are quite often faced with a question, ‘how can you contribute to the success and competitiveness of the business?’” says Heiko Schwarz, CEO and founder of riskmethods. “This is a really good answer that they can leverage to position the value contribution of supply chain functions to overall company success.”
The survey founddirect suppliers represented the most predominant source of disruption over the last 12 months (59%). Logistics hubs, such as ports, airports and warehouses, were a close second (52%), followed by organizations’ own plants or production facilities (41%).
Many respondents have awakened to the increased risk of disruption in their supply chains in today’s more complex, volatile marketplace. But they face significant obstacles to managing it. For example, 57% reported the quality and accuracy of the risk data they currently collect as one of the biggest challenges they face in assessing third-party vendor risks.
Most organizations recognize that identifying, collecting and analyzing risk information that is timely and accurate is not their core value proposition. “This is the reason why riskmethods exists,” says Bill DeMartino, chief product officer and managing director of the Americas at riskmethods. “They basically need to find a way, a partner, a technology, a process to bring all this information together in a way that their users can utilize it, understand it, and make better decisions from it.”
The significant financial impact of supply chain disruption has won attention in board rooms and C-suites, and they’re responding with resources. Two-thirds of respondents (66%) increased their budgets for supply chain risk management in 2022, with 20% increasing significantly.
For more information on managing and mitigating the supply chain disruption risk landscape, please review the complete survey results here.
riskmethods empowers businesses to proactively identify, assess and mitigate supply chain risk. By using artificial intelligence, we help you automate and accelerate threat detection, enabling you to gain competitive advantage with a well-managed approach to meeting customer demands, protecting reputation and reducing total cost of risk.