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

Blasgen to retire as leader of CSCMP in March

Reports: Outlook calls for stronger supply chains

Gartner: 4 ways to compete with industry disruptors

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

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Supply chain resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Seizing the helm

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

Featured Video

Be8de8b1 9bd3 48d6 9400 0bf476fd1f5d

Optimization Through Lean Management 

Viewer Contributed
Uncertain times can put a tremendous strain on your business’s people, processes and supply chains. However, operations can mitigate some of these factors by adopting lean management principles and instilling a culture of continuous improvement. Raymond Lean Management Manager of Solutions and Support Centers Keith...

FEATURED WHITE PAPERS

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

  • Research Report: New Rules for Supply Chain Insights, Collaboration and Overall Resiliency

  • Logistics 2030 – Navigating a Disruptive Decade (Year 2 Report)

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