Weather called leading culprit for supply chain disruptions
More than half of respondents to a global survey said they suffered supply chain disruptions at the hands of Mother Nature last year.
Experiencing a supply chain disruption? More than likely, Mother Nature—in the form of weather events like tornadoes, floods, and windstorms—is to blame.
A recent survey by the insurer Zurich Financial Services Group and the U.K.-based Business Continuity Institute looked at the causes and consequences of supply chain disruption. Topping the list of causes was bad weather, with 51 percent of survey respondents reporting that they had experienced weather-related disruption in the past 12 months.
Unplanned telecommunications and information technology outages were the second most-common reason for a disruption, cited by 41 percent of survey takers. Tied for third, with 21 percent, were transport-network disruptions and an earthquake and/or tsunami.
The consequences of a supply chain break can be severe, the survey results suggested. Forty-nine percent of respondents said it can lead to lost productivity, and 38 percent said it could increase operating costs. One-third said that such disruptions cause a loss in revenue.
Just how costly can supply chain disruptions be? Seventeen percent of the respondents said the financial costs of the largest single supply chain incident they experienced in the past year amounted to $1.3 million or more.
The research, the Supply Chain Resilience 2011 Study, was conducted among more than 500 supply chain organizations in 62 countries.
Resources Mentioned In This Article
Join the Discussion
After you comment, click Post. If you're not already logged in, you will be asked to log in or register.
Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : Weather called leading culprit for supply chain disruptions">contact Chief Editor David Maloney. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.