Most, 80 per cent of organisations experienced supply chain disruptions this year, more than last year, according to the 14th edition of the Business Continuity Institute (BCI) Supply Chain Resilience report, sponsored by Zurich Resilience Solutions, the risk advisory business of the insurer Zurich. The report, launched this morning in EMEA, describes such disruptions as ‘common but not excessively frequent’.
In a foreword to the document, Rachael Elliott of the BCI noted that the covid pandemic tested supply chains ‘to the core’, as global logistics and transport routes faced severe disruption, and some goods simply could not reach their destination. Now the world faces new challenges to supply chains; according to the BCI’s survey, the most popular reason for supply chain disruption this year was ‘third-party failure’.
She wrote: “All this highlights just how important it is to regularly review the effectiveness of supply chain management and, if third-party failure continues to be the primary reason for disruption, ensuring that due diligence practices align with those of peers as well as best practices. Indeed, processes appear to have improved across the board, but these good practices have sadly been counteracted by an increase in disruption and new, emerging impacts.”
The report stated that increasingly the focus is on examining the entire supply chains so as to better understand the origins of disruptions and seek to prevent it. The second and third cause of disruptions are cyber attack; and adverse weather or natural disaster. The survey concluded that while enterprise-wide reporting of performance affecting supply chain disruption has reached a high, it’s only practiced in less than two out of five organisations. Excel spreadsheets remain the most popular tool for analysing supply chain disruptions, although more are taking up specialist business continuity management software.
A majority of those surveyed said that they measure the financial cost of disruptions; and that they have arrangements for business continuity to deal with supply chain disruption – fewer have such arrangements than reported during the pandemic, yet more than pre-pandemic. More are asking for more than a plan from their suppliers for what they’ll do in case of disruption; some are holding joint exercises or workshops. Those surveyed are pointing to other concerns, whether emerging regulations, civil unrest, industrial disputes, human and animal illnesses, or supply chain insolvencies.
Insurance uptake to mitigate supply chain disruption rose notably in 2024. According to the survey, some are seeing a slip in the management commitment to managing supply chain risk, due to budget or other priorities.
Source of the news: https://professionalsecurity.co.uk/news/commercial-security/supply-chain-resilience-report-2/
For detail report from BCI, please visit at: https://www.thebci.org/resource/bci-horizon-scan-report-2024.html
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