Risk management 'increasingly important for supply chains'
Commercial insurance
27th May 2009
Risk management has become more important to company supply chains in the current economic climate, a new report has claimed.
According to AMR Research, the potential risk of product failures has increased as supply chains have become longer and more complicated.
Top concerns among respondents to a poll included supplier failure, commodity price volatility, problems with internal product quality and falling consumer spending, while other worries included swine flu and Somali pirates.
Businesses reported that enhancing collaboration with trading partners, introducing performance-based contracts, increasing IT investment and smarter modelling all helped them to mitigate risk.
The study suggested that the latest quarterly survey by the firm has revealed "a quantum leap in maturity among global supply chain professionals who have enjoyed the ultimate real-world crash course in risk assessment and mitigation".
Firms have also been warned by Ernst & Young that cases of fraud are likely to rise over the coming years in European businesses as a result of the current economic climate.
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