Nearly half of companies with global supply chains say they fear major disruptions in their ability to source, produce and ship goods around the world, according to a survey sponsored by UPS.
In the survey, 47% of companies say they need to pay more attention to risk mitigation compared to just 16% that believe they pay an adequate amount of attention. More than a third — 38% — rate the resilience of their supply chain above average, while 42% say the expansion of their global supply chains has outpaced their ability to manage risk.
The global survey of nearly 350 senior executives was released this week by UPS and the Economist Intelligence Unit.
“Businesses appear to be increasingly vulnerable to supply chain disruptions that can have a catastrophic impact on business performance,” said Dan Brutto, president of UPS International, in a statement. “Success in the global economy depends in large part on building successful risk mitigation strategies that can turn a resilient supply chain into a competitive advantage.”
Companies today already are more vulnerable as a result of having created tighter and leaner supply chains, said Kim Andreasson, senior editor at the Economist Intelligence Unit and the editor of the report.
“A lean organization is a requirement for competitiveness, but that can also expose a business to an increasing number of risks,” he said.