No Quick Fixes For Disruptions

Disruptions impacting profitability and customer expectations.

Has your company been rocked lately by a supply chain disruption? It may not help much, but you can seek some solace in knowing you're not alone. According to a study conducted by Accenture, 73% of supply chain executives at U.S. companies with more than $1 billion in sales suffered at least one disruption within the past five years. The disruptions most frequently mentioned include problems associated with supply chain partners, raw materials and natural disasters.

Don't expect immediate resolution to a supply chain disruption -- 36% of those surveyed say it took them more than a month to recover, and another 32% say it took them between one week and a month to bounce back. At almost every company (94%), the disruption impacted on profitability and meeting customer expectations.

Nearly half (48%) anticipate their level of supply chain risk will increase in the next three years. As a result, Accenture notes that manufacturers will compensate by investing in better supply chain technology, more accurate planning and forecasting, increased logistics capacity, and closer collaboration with their supply chain partners.

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