Supply Chain Crisis: Are You Staying on Top of the Ever-Evolving Risks?

High-impact supply chain events are now an everyday fact of life for businesses. But while most organizations can identify the causes of these disruptions, not enough are spotting risks before they become disasters. Based on an Interos survey of 1,500 decision makers across multiple industries, the average annual cost of supply chain disruptions to each organization is $182 million. On average, respondents said they were impacted by between three and five major risk events, in particular cyberattacks and political instability. As a consequence, 64% said they have plans to make wholesale changes to their supply chain footprints – primarily by rethinking the geographic locations of their suppliers. 51% of suppliers are expected to be reshored or nearshored in the next three years, while 61% expect to increase the number of companies in their supply chains over the next 12 months. However, only 11% said they currently monitor supplier risks on a continuous basis (near-real time or daily). More likely, risks are monitored:

• Weekly – 16%
• Monthly – 35%
• Quarterly – 25%
• Every Six Months – 7%, or
• Annually – 4%.

On the upside, 82% recognize that maintaining supply chain resilience is a group effort. 82% say cooperation across internal departments and suppliers is vital to protect against disruptions, and 78% recognize the need to improve how they collaborate and share information.