A 2008 study by the Boston-based Aberdeen Group (Supply Chain Risk Management: Building a Resilient Global Supply Chain) found that 99 percent of study participants experienced at least one supply chain disruption over the previous year. The disruptions led to financial losses for 58%, loss of market share for 30% and brand reputation damage for 24%. Only 12% of the 138 companies surveyed responded having a risk-resilient global supply chain.
Supply Chain Disruptions - Events occurring over the past 12 months:
- Supplier capacity did not meet our demand: 56%
- Raw material price increases/shortages: 49%
- Unexpected changes in customer demand: 45%
- Shipment delayed/damaged/misdirected: 39%
- Fuel price increases/shortages: 35%
Source: Siegfried, M. "The Resilient Supply Chain," Inside Supply Management, December 2008, Vol. 19, No. 12: 28-30.