Almost three quarters of firms say they have continuity arrangements in place with regard to supply chain management, according to a survey.
A report by the Business Continuity Institute (BCI), in partnership with Zurich Insurance Group, found such organisations were eight times more likely to report greater supply chain visibility, twice as likely to have insurance for supply chain losses and three times more likely to display top management commitment.
However, the survey found more than a fifth (22%) of respondents did not have full visibility of their supply chains.
The report said 74% of respondents asked their suppliers about their business continuity arrangements, up on 63% in last year’s survey, and this coincided with other good practices such as organisation-wide reporting of disruption.
BCI said 63% of organisations did not use any technology to analyse, track or monitor the performance of their supply chains, while half (51%) did not insure against supply chain disruption.
The report said the top causes of disruption were unplanned ICT and telecommunications outage, cyber attack and data breach, and loss of talent and/or skills. Fire is the biggest survey climber compared to last year, up from 14th place to seventh, while terrorist acts and currency volatility have dropped out of the top 10.
The biggest impacts of disruptions are loss of productivity, increased cost of working and customer complaints.
In terms of the cost of disruptions, 53% reported losses of less than €50,000, up on 33% last year, while losses of more than €1m decreased from 32% to 22%.
Gianluca Riglietti, research manager at BCI, said: “Supply chain disruptions have become increasingly tough for organisations to deal with. The current threat landscape requires very high levels of preparedness, as it includes a wide range of threats such as cyber attacks, terrorism and natural disasters.
“Professionals understand this, which is reflected in the higher number of respondents adopting business continuity arrangements to deal with supply chain disruptions.
“However, there is still room for improvement, as more than a fifth do not have full visibility of their supply chains.”