92 per cent reviewed supply chain in wake of 2011 disasters

16 March 2012

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16 March 2012 | Adam Leach

The vast majority of businesses that were hit by the tsunami in Japan, floods in Thailand or earthquake in New Zealand don’t expect to make significant changes to their supply chain strategy.

A survey following up with companies that reported disruption as a result of the disasters, which published this week by the Business Continuity Institute (BCI), found that while 92 per cent of respondents had reviewed their supply chain operations, just 12 per cent expected to make significant changes.

The majority (70 per cent) expect to make ‘some changes’ to strategy, while 12 per cent predicted no change occurring.

Commenting on the findings, Lyndon Bird, technical development director and board member at the BCI, said: “The quest for supply chain optimisation has taken a pause, and we are seeing signs of a more considered approach to supply chain risk, with businesses leveraging techniques such as business continuity management to better understand their vulnerability and to put in place measures to improve resilience and continuity when faced with disruption.”

Regarding the amount of time taken to get operations up and running after disruptions, the survey found a varied spread, with some companies succeeding within a week and at the other end, one company yet to fully re-establish normal operations. It found that 29 per cent were ready within a week, 24 per cent within a month, 29 per cent between five and 12 weeks, and 12 per cent taking between 13 and 24 weeks. Six per cent of respondents took more than six months to return to normal.


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