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Firms ‘Gambling with Their Existence’ Without Supply Chain Risk Management

Will Green breaks down the findings of a new supply chain report by the Global Supply Chain Institute at the University of Texas. The writers of the report were surprised to find how many businesses lacked basic risk mitigation strategies. Among other things, it was revealed that “on average 38 per cent of suppliers were single sourced, though the range for single sourcing among respondents was 13 per cent to 63 per cent. The exception was transport carriers, which were single sourced by 14 per cent of firms.” The main reason for single sourcing was that one supplier just gave a much cheaper rate, which is still a pretty silly reason considering how much is at stake. For more numbers, you can view Green’s article here: http://www.supplymanagement.com/news/2014/firms-gambling-with-their-existence-by-having-no-supply-chain-risk-mitigation-strategies

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