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Research Study Reveals Firms are Under-investing in Managing Supply Chain Risk
In spite of the high impact supply chain disruptions have on shareholder value, most companies spend a miniscule amount on assessing and auditing supplier and supply chain risk, according to a recent study by ChainLink Research and ImpactFactor.
By: ChainLink Research and ImpactFactor
A wide range of companies were surveyed about a variety of supply chain risk issues: the kinds of investments being made in resilience, the scope of responsibility for supply chain risk management, and an assessment of how well companies are doing at managing risk in their supply base and supply chain.
Some of the key findings include:
• For about 80% of companies, supply chain resilience is not yet a priority at the top executive level.
• Only about 5% of companies surveyed spend over $1M annually on programs to assess and audit supplier and supply chain risk. Most spend less than $50K.
• Almost 90% of companies assess supplier risk in some way, but fewer than 30% have a published set of resilience and risk mitigation standards for their suppliers.
• Most companies rate their own ability to manage supply chain risk as quite low. In only two out of the 18 areas of risk that we asked about did more than half of the respondents say their performance was ‘good’ or ‘very good.’
A webinar discussing results from the research can be heard on August 11, 2011. To register for this webinar, go to http://www.chainlinkresearch.com/
A report on findings from the research can be downloaded at http://www.clresearch.com/
For more information visit: http://www.chainlinkresearch.com
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