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Weak Supply Chains Could Cause Chaos
01 Dec 2003
Business leaders are urged to heed the findings of a new report published by Cranfield School of Management. Experts warn that supply chains, the means by which companies receive components or goods and deliver products and services, are at greater risk to massive disruption than ever before.
Single sourcing, outsourcing, justin-time delivery and a raft of cost saving measures have injected a high dose of risk into supply chains. These industry trends, together with external threats such as terrorist attacks, labour disputes and the potential for natural disasters, show just how vulnerable companies are to disruptions within their supply chains, which can lead to the loss of thousands, and in some cases, millions of pounds.
The Cranfield report "Creating Resilient Supply Chains" identifies weaknesses that can go unnoticed by business. There is a short sightedness that prevents companies from seeing beyond their first tier of supplier.
Further, it outlines opportunities to increase resilience to the inherent and profound threats posed by the complex context within which companies operate. The research aims to increase understanding, awareness and, ultimately, visibility of risk.
The research was commissioned by the Department of Transport which has sought to highlight the immediate effect that episodes such as the recent fuel crisis, foot & mouth, and the SARS outbreak had, and could have once again, if company supply chains go unprotected. In addition, internal threats to supply chain resilience such as the growth in global sourcing, off- shore manufacturing and many cost reducing measures have left businesses increasingly exposed.
Business leaders are invited to a major conference to consider these issues at Cranfield School of Management on February 5th 2004.
www.cranfield.ac.uk
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