We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Weather is the leading culprit for supply chain disruptions
Forward Thinking

Weather is the leading culprit for supply chain disruptions

November 22, 2011
Supply Chain Quarterly Staff
No Comments

Having a supply chain disruption? More than likely, the blame can be assigned to adverse weather events, such as a tornado, flood, or windstorm, according to the results of a new survey of supply chain organizations worldwide.

A survey conducted by the Zurich Financial Services Group and the UK-based Business Continuity Institute found that the most common reason for a supply chain disruption in 2011 was bad weather, cited by 51 percent of respondents. The two groups canvassed 559 companies from 14 different industries and 62 countries.

The survey found that 85 percent of respondents had suffered at least one supply chain break in 2011. Unplanned telecommunications and information technology outages were the second most-common reason for a disruption, cited by 41 percent of survey takers. There was a tie for third, with 21 percent listing transport-network disruption and an equal percentage citing an earthquake and/or tsunami. Most of those (20 percent) were affected by the March 11 earthquake and tsunami in Japan.

The consequences of a supply chain break can be severe for an organization, the survey results suggested. When asked what impact such a disruption could have on affected companies, 49 percent of respondents said that it can result in a loss of productivity, and another 38 percent said it could increase operating costs. Thirty-two percent said disruptions cause a loss in revenue—so much so, in fact, that 17 percent of the respondents said the financial costs of the largest single supply chain incident they experienced this past year amounted to 1 million euros or more.

Finally, the survey also found that most organizations are not prepared to handle a severe disruption. Only 8 percent of the respondents were confident that their suppliers had a business continuity program in place to respond specifically to supply chain ruptures.

Top five causes of supply chain disruptions
Adverse weather 51 percent
Information technology or telecommunications outage 41 percent
Transport network disruption 21 percent
Earthquake or tsunami 21 percent
Failure by outsourced service provider 15 percent
Loss of talent/skills 13 percent
Source: "Supply Chain Resilience 2011 Study," Zurich Financial Services Group and Business Continuity Institute
  • Related Articles

    The high price of supply chain disruptions

    Supply chain disruptions hit record high

    Supply chain execs optimistic about recovery, despite big disruptions and challenges ahead

Recent Articles by Supply Chain Quarterly Staff

ProMatDX: Facility design in the age of “new” commerce

ProMatDX: Finding sustainable warehouse solutions

ProMatDX 2021: retailers turn to DOM and OMS software to meet shoppers’ high expectations

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • COVID-19 and the health care supply chain: impacts and lessons learned

  • Domino effects of Suez Canal blockage could last for months

  • Do or Die for the Obsolete Supply Chain Management Practices in 2021

  • What type of supply chain strategy drives market cap leadership?

  • Demand for robotic goods-to-person systems to quadruple through 2023

Featured Video

6cabd6ef 64df 4460 bb11 e90c2bdea0a5

Identifying Intralogistics Solutions to Fit Your Operation: LinkedIn Live Ep. 4

Viewer Contributed
As technology evolves, the advantages of using semi- and fully automated solutions to increase productivity and address labor shortages are clear. However, before an organization jumps fully into automation, optimization is a key step that must happen first. Intralogistics solutions, such as Raymond’s iWAREHOUSE and...

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Operations: Adapt Fast or Disappear

  • Using innovation to manage peak seasonal demand

  • Warehouse Management System Project Toolkit

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing