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What is supply chain disruption costing your company?

bumpAccording to a new study by Zurich Insurance, disruptions to the supply chain are costing UK companies £ 200,000 a year. The causes of disruption were listed as product quality incidents, adverse weather, and unplanned outage of IT, and the average length of disruption was 5 weeks. So how does this affect you? Well, supply chain disruption doesn’t just occur in the UK, it occurs worldwide. Consider a few examples of weather disruptions (and how they can affect supply chain) provided in this article by Malory Davies: A quick scan of the press shows that in just the past few days storms in the eastern United States knocked out electricity supplies to two million people; heavy rain in the UK led to widespread flooding across the north; and flooding in India forced two million people out of their homes. And the report suggests that over one third of mid-sized UK companies predict the Olympics will cause greater supply chain disruption. Why shouldn’t part of the legacy of the London games be better planning for business disruption? Recognizing the dangers of supply chain disruption – both the immediate impact and the long term damage – can guide you towards understanding what needs to be addressed and why. While it may sometimes seem that disruption only has an immediate impact, supply chains always carry the consequence, good or bad, all the way down the line.

About Matthew Kabik

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Matthew Kabik is the former Editor of Computer Aid's Accelerating IT Success. He worked at Computer Aid, Inc. from 2008 to 2014 in the Harrisburg offices, where he was a copywriter, social media consultant, and trainer before moving into editorial.

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ITMPI 728X90 002