The Cranfield School of Management Business is urging leaders to heed warnings that supply chains are at greater risk to massive disruption than ever before. Single sourcing, outsourcing, just-in-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.
A new report by the Cranfield School of Business Management – Creating Resilient Supply Chains – identifies weaknesses that can go unnoticed by business.
It also outlines opportunities to increase resilience to the inherent and profound threats posed by the complex context within which companies operate.
The research was commissioned by the Department of Transport,and highlights 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.