CIPS News


Free report from BCI on roots of supply chain failure

CIPS 3 November 2011

Business Continuity Institute 2011 report on the high levels of supplt chain disruption experienced by business all over the world

The Business Continuity Institute (BCI) has published its detailed 2011 report highlighting deep-rooted supply chain failures around the world.

The research was conducted amongst 62 countries and showed that 85% of organisations recorded at least one supply chain disruption in 2011, with 40% of those disruptions originating past first tiers suppliers.

Amongst the findings:

  • 51% reported adverse weather conditions
  • IT and telecomunications outages affected 41%
  • Cyber attacks were on the rise in the financial services sector
  • Longer term consequences of disruption included reputational damage, questions from shareholders and more regulatory scrutiny

David Noble, Chief Executive Officer of the Chartered Institute of Purchasing & Supply (CIPS) added:

 “Supply chain risk management is gaining more recognition each year, and for good reason. Disruptions to supply chains are becoming virtually commonplace and as the BCI report shows a high proportion of disruptions happen further down the supply chain in places many companies don’t look such as second or third tiers suppliers. It often comes as a surprise when trouble hits.  Our own UK research this year supported similar findings that certain sectors are lagging behind on awareness so whether it’s energy surges, or adverse weather conditions, the planning and mitigation of that risk will help prevent expensive reputation and revenue damage at the very least.”

Report available to download for CIPS members from resources area of the CIPS website, and also from the BCI website.

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