The research, commissioned by Achilles – a global supply chain risk management company – revealed the total average cost of all supply chain disruptions was £105,000 per manufacturer.
The survey revealed:
The most costly supply chain disruptions per manufacturer include:
Despite the significant costs involved, 58% of manufacturers said they were reliant to some extent on pieces of paper to manage information about suppliers.
Adrian Chamberlain, Chief Executive of Achilles, said: “This research shows that manufacturers are paying a heavy price for supply chain failures; many of which could be prevented.
“In our experience, efforts to improve information about the supply chain work best when whole industries – such as oil and gas – work collaboratively to agree and implement standardised requirements of all suppliers in terms of business critical areas, such as health and safety to reduce the burden of administration. They can then manage the information on a global, centralised database – implementing the same high standards not only in the UK but in every country in which they operate.
“With a significant impact on the bottom line, addressing supply chain failure should be at the forefront of people’s minds, because the cost will be felt not only by industry but also shareholders and consumers.”
*- Some manufacturers would have experienced duplicated incidents, whereby one type of disruption would affect/overlap on another EG the financial failure of a supplier would also mean they were unable to deliver.
*- The survey was carried out among procurement professionals from 108 manufacturing companies with 250+ employees. This sample is representative of the entire manufacturing sector in the UK.