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17 April 2013 | Adam Leach
The ongoing global economic crisis was responsible for more supply chain disruptions than both adverse weather conditions and supplier insolvencies in the past year.
According to a survey, Managing the value chain in turbulent times published yesterday by Dynamic Markets on behalf of Oracle, found 63 per cent of large companies in Europe, the Middle East and Africa experienced supply chain disruption in the past year. But despite this, just 25 per cent of the 663 senior executives who responded said they had carried out a full supply chain risk assessment.
Dominic Regan, senior director, value chain execution at Oracle EMEA, said in a statement: “The survey paints a picture whereby a lack of communication and collaboration, when combined with poor risk assessments and inadequate compliance measures, is putting businesses at risk of significant operational disruption and financial loss.”
The average disruption to businesses’ supply chain operations was 63 days. Economic disruption was the biggest cause, according to 24 per cent, followed by adverse weather cited 19 per cent, and supplier insolvency highlighted by 16 per cent.