In the previous blogs in this series on best practice in BC planning, I looked at identifying and mitigating the risks to your corporate environment, scenario planning and creating incident plans. The next step in your BC planning should be to consider your supply chain resilience.
In our ever more interconnected world, where we rely not only on third-party suppliers of materials and utilities, but also cloud-hosted data storage, outsourced IT help desks and many other outsourced services, our supply chains are becoming ever longer and more remotely spread. This trend brings with it many business benefits, such as access to highly trained professionals on demand. But it also leads to increasing risks of dependency on these stretched supply chains.
The BCI Supply Chain Resilience Report 2016 contains some interesting facts. 70% of respondents to their survey had experienced at least one supply chain disruption in the last 12 months. 41% of disruptions occurred at the Tier 1 level and, in spite of this, 66% of respondents did not have full visibility of their supply chains. 68% of companies affected by a disruption event suffered from loss of productivity, 37% lost revenue, 40% received customer complaints and, worst of all, 38% sustained damage to their brand reputation.