While risk continues to increase with the growing complexity of modern supply chains, companies largely lack maturity in their processes to monitor and mitigate procurement problems, according to Procuring Risk: The State of Risk Management and Mitigation in Today’s Global Supply Chain, a survey by supply chain risk management firm riskmethods.
A plurality of respondents (47%) had experienced between one and five significant supply chain disruptions in the previous 12 months, while 13% suffered 20 or more. Alarmingly, 12% did not even know whether their company had experienced any serious supply chain disruptions, reflecting acutely limited visibility into operations and third party relationships.
When asked about what risk assessment and mitigation measures their company had in place, 49% of respondents said their organization had no structured assessment of supplier criticality or impact, and only 20% had any structured supply chain risk mitigation plans, while 27% had none at all.