What’s your organization’s strategy for identifying and managing the risks that face your supply chain? Whatever it is, it might not be sufficient, according to a new white paper by UPS Capital.
The paper brought in data from 150 supply chain executives, and the findings were surprising. Among them:
- 90% do not quantify risk when outsourcing production
- 66% have risk managers in their firms, usually in legal or compliance — but virtually all of them ignore supply chain risk
- None of them use outside expertise to assess risk for their supply chains, and
- 100% acknowledged insurance as a highly effective mitigation tool, but also said it wasn’t on their radar or part of their purview.
Why is that? Said one interviewee: “Frankly, my boss isn’t asking me to look at [risk]. It’s the right thing to do, but we aren’t rewarded for it.” In other words, there needs to be more incentive to tackle supply chain risk.
The UPS paper examines these issues, and also provides possible risk management processes for companies of all sizes. Click here to read the entire paper.