What do finance chiefs worry about when they get together? Well, it appears that increasingly it is the supply chain. Much of the debate at a recent Economic CFO conference was focused on supply chain risk.
It’s hardly surprising given some of the natural disasters of the past couple of years combined with the impact of recession on supplier finances.
What is perhaps surprising is that a recent study by procurement advisors Achilles found that one in twelve large businesses is substantially reliant on high-risk suppliers.
Some 200 UK businesses were surveyed at it was found that eight per cent believe that more than half of their suppliers are “high risk.” A further 18 per cent think between 11 and 50 per cent of their suppliers are high risk.
Achilles chief Adrian Chamberlain argues that distant sourcing and extended global supply chains are not only raising levels of supplier risk but are creating more diverse forms of risk.
Devising strategies to mitigate supply chain risk is a critical issue for many organisations. And it is one that Patrik Jansson, vice president, head of engineering and materials management operations at Sony Ericsson, will be examining when he speak at the Extended Supply Chain Conference which takes place in London in April.
He will examine collaborative strategies to manage and mitigate those risks as they arise and build a resilient supply chain. And he will also look at options for alternative sources of supply.