No Quick Fixes For Disruptions

Oct. 11, 2006
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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About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

Call: (941) 208-4370

Follow on Twitter @SupplyChainDave

During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

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