According to research from Aldermore’s SME Growth Index, 60% (3.3 million) small and medium-sized business have experienced delays in their supply chains in the last year.
Losses on average reached £625,000 in income as a result of these delays.
The bank has said that more than half of SMEs, (65%), of companies are vulnerable to supply chain shocks due to a ‘lack of awareness’.
Tim Boag, Group Managing Director for Business Finance at Aldermore said:
“Supply chain issues can impede the growth of SMEs, limiting their ability to reliably deliver for their customers on existing projects or pursue new opportunities.
“With delays still making headlines and impacting profits, it’s important for every business leader to consider if there are any vulnerabilities that expose them. This can be done through a supply chain audit or the development of a contingency plan.
“This will help build stronger relationships and clearer communications so businesses can react quickly should they be notified of changes that might impact their supply chains.
“With the current backdrop of economic uncertainty, SMEs need to take steps to protect themselves against unwanted shocks.”
The company has said that a ‘significant’ number of businesses are taking action as a result of the instability within supply chains right now. It said that 58% have undergone a ‘full supply chain audit’ or at least put some sort of contingency plan in place to ‘minimise any future disruptions’ and be better able to adapt should a problem occur.