Heightening Supply Chain Security

Every day, as global supply chains grow in size, reach and complexity, they grow more vulnerable to a myriad of threats and hazards that can damage businesses and threaten the global economy. The vast list of unforeseen disruptions ranges from terrorist attacks to natural disasters to corruption to labor disputes.

Because global supply chains stretch across geographies and involve many players, they create difficult risk management challenges for businesses. Most companies see proactive protection of supply chains as a priority, but many are not prepared and have no business continuity plans in place with their suppliers in the event of a disruption.

Many can’t even identify their key suppliers, and 70 percent say they lack visibility over their entire supply chain. During a disruption, these companies scramble to find alternative plans, which can be costly, damaging to business reputation, and cause suppliers to lose clients.

Global companies need a common approach that involves a range of stakeholders in the supply chain. There also needs to be a marked increase in proactive practices, starting with clear continuity plans in case of disruptions.