Consultancy
- Warehouse Automation – Is it really worth it?
- The Importance of Sustainability in the Supply Chain
- Big data and supply chain analytics
- 3 tips for managing a successful supply chain
- Challenges and opportunities for healthcare and life science supply chains
- Challenges and Opportunities for Car Supply Chains
- Warehouse robots at Christmas
- 3 tips for managing a successful supply chain
- How to improve warehouse operations
- The environmental impact of GRP
- Effect of Ecommerce on Fashion Supply Chains
- Automated Warehouses: The Future of Business
- The future of the UK’s supply chains after Brexit
- Why customer demand is driving a need for ecommerce warehousing
- Common S&OP mistakes
The importance of assessing supply chain risks
Supply Chain Risks
It's important, now more than ever, to ensure that your company has assessed all of the potential supply chain risks it faces.
According to recent claims reviews by leading bodies, global supply chains are increasingly more likely to claim for higher and more severe business interruptions than four years ago. This increase has not gone unnoticed by many insurers and highlights the ever-growing need to assess the supply chain risks your company may face.
Unusually, the reason for this claim increase may actually come from smoother and more integrated supply chains. Whilst previously a fire or other business interruption may have only affected one area of a business in isolation, nowadays entire sectors can fall victim to these issues.
Although an integrated supply chain may help your business run like a well-oiled machine, it can also mean that supply chain risks may create more of a ‘knock-on’ effect further down the line. This is especially the case for businesses that have a concentration of important business components in one area, as this often creates a higher concentration of risks.
These investigations show that businesses in the energy sector were most likely to suffer due to poorly assessed supply chain risks.
This is in part because of the move to onshore factories and also down to ever increasing interconnections between different areas of a business. Nonetheless, modern supply chain risks are a serious threat to all companies, regardless of sector.
It has also been revealed that over 88% of insurance claims from businesses were originally down to human error, rather than natural causes such as flooding or storms.
However, even known problems and natural disasters are likely to cause huge setbacks for your company if there are no sensible procedures put in place to combat each of these threats.
Below are some of the biggest supply chain risks faced by modern global businesses today.
Between 2010 and 2014, the top ten causes of loss for businesses globally included:
- Explosions and fires
- Heavy storms
- Breakdown of machinery
- Faulty building design and manufacturing
- Rioting and vandalism
- Cast loss
- Flooding
- Collapse of buildings
- Human and operating errors
- Power interruption
Armed with this knowledge, businesses can begin to understand the importance of not only streamlining their supply chain but assessing the modern day risks that come with it too.
Better supply chains often come with bigger risks. Therefore, you must ensure you have taken to necessary precautions to minimise damage and loss, whilst maximising company growth.
Other stories
Spring Cleaning and CRM
Now that the weather has finally picked up into some sort of spring-like conditions, naturally people look to do a bit of spring cleaning and organising and businesses are no different. Many are under the impression that customer relationship...
How social media is increasingly used for healthcare marketing
Healthcare marketing agencies will tell that those targeting healthcare marketing mix has changed since the introduction of social media. Marketing strategies must be adapted to include social marketing which is now an essential part of reaching...
Football shirt printing
When it comes to sport, creating a solid team identity is a top priority and it’s important to make sure everyone knows who you are and that you mean business! Every team has their own logo, phrasing or numbers and showing those off through...