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Public organisations 'unprepared for supply chain disruption'

1 August 2012

Public sector organisations may not be doing enough to protect themselves against potential disruptions to their supply chains.

A report from insurer Zurich Municipal has revealed that only six per cent of public sector leaders surveyed regard supply chain failure as being likely to happen to their organisation.

Similarly, only four per cent of those polled expect any issues to ensue as a result of outsourcing, with only a few organisations requiring required suppliers and partners to complete risk profiles.

The report stated that this outlook is flawed, highlighting figures from the Business Continuity Institute revealing that 85 per cent of organisations experienced at least one supply chain disruption in 2011.

Anne Tory, managing director at Zurich Municipal, said public sector bosses "are not thinking strategically about managing risk within their supply chain and across partners. We believe their apparent confidence in resilience to supply chain risks is misplaced".

This issue could become more prevalent in years to come, with a recent Interserve poll showing that local councils are planning to outsource 32 per cent of all services by 2014/15.

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Categories: Central Government, Public Sector

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