Food Supply Chain Risk Management
Supply chain risk management is a top priority for some manufacturers with top management committed to ensuring the resilience of their supply chain in their efforts to achieve their strategic objectives.
But this focus does not apply to all business despite the fact that business can lose millions because of cost volatility, supply disruption, non-compliance fines and incidents that cause damage to their brand and reputation.
Global supply chains are dynamic, continually growing in size and complexity and vulnerable to an increasing number of threats, despite growing threats all but a few firms have full visibility of their supply chain or record incidents that impact it. The Business Continuity Institute Supply Chain Resilience Report 2015 (BCI SCR) states that 72% of firms do not have full visibility and 35% do not report incidents of disruption at all.
The Report further states that;
- 74% of businesses experienced at least one instance of supply chain disruption
- 50% of those disruptions came from tier 1 suppliers
- 31% of firms do not analyse the source of disruption
Whilst a business quite rightly continues to seek to maximize trade through modernization of their supply chain infrastructures and processes it needs in tandem to focus on the increasing vulnerabilities, threats and hazards that come with the continued globalization and complexity of their supply chains or suffer the consequences. The BCI SCR 2015 records that amongst the top consequences of disruption are;
- Loss of Productivity 58%
- Increase cost of working 39%
- Loss of revenue 38%
With threats and disruptions coming from Unplanned IT outages, Cyber attack and data breach, transport network disruption to name a few it is clear that understanding and accurately quantifying business interruption and supply chain exposures is a challenge that needs to be tackled to diminish the consequences of disruption; how much profit could your business lose through loss of productivity?
Supply Chain is a vital part of business growth and needs focus and protection as much as physical assets and your employees.
Arthur J Gallagher’s team can help you to more fully understand the exposures to your supply chain through a comprehensive and through analysis that will enable you to;
- Understand the key risk exposures within your supply chain and also that of your key suppliers
- Provide a risk management plan to help reduce exposures to your business
- Implement and monitor the plan
- Provide risk transfer options for the critical risk identified