Supply chain disruption 'common in 2011'

The majority of businesses have experienced some kind of supply chain disruption this year, with adverse weather the most common cause of such events.

This is according to a new study by the Business Continuity Institute (BCI) and Zurich Financial Services, which found that 85 per cent of companies reported at least one supply chain problem in 2011.

Weather conditions were cited as the main cause of supply breakdowns by 51 per cent of firms, while unplanned IT and telecommunication outages were shown to be the second biggest disrupting factor.

David Noble, chief executive of the Chartered Institute of Purchasing and Supply, said more companies are recognising the importance of supply chain risk management.

"Whether it's energy surges or adverse weather conditions, the planning and mitigation of that risk will help prevent expensive reputation and revenue damage at the very least," he commented.

Natural events such as the recent severe flooding in Thailand have placed global supply chains under renewed pressure, while many companies were badly affected by the devastating earthquake and tsunami that struck Japan in March.

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Categories: Commercial