Report: Supply Chain Disruptions Cost Companies $184 Million Each Year

Between COVID-19, the Suez Canal blockage, and other surprise disruptions, the past two years haven’t been easy on the global supply chain. A recent international survey estimates a hefty price for organizations as a result – one that goes beyond money. The Interos Annual Global Supply Chain Report surveyed 900 senior IT, IT security and procurement decision-makers from companies across the US and EU, and nearly all of them (94%) agreed that there’s been a negative revenue impact as a result of some kind of supply chain disruption, estimated as an average $184 million each year. Beyond the financial impact, 83% said their organizations have also suffered reputational damage as well. The top risks reported:

• COVID-19 – 51%
• Cybersecurity risks – 42%
• Global financial insecurity – 40%
• Implementation of GDPR in Europe – 37%
• Supplier bankruptcy/liquidity – 30%
• Geopolitical events – 27%
• Natural disasters – 25%
• S./China trade dispute – 24%
• Unethical labor practices – 21%
• Brexit – 20%

With the increasing visibility of supply chain risks, half of those surveyed belief it will become their organization’s top business priority within the next two years, as evidenced by the seriousness with which boards are taking the issue. 78% reported their boards meet to discuss supply chain risk at least once a month.