Maintaining a supply chain's resilience is a daunting challenge, especially considering the increasing scale and complexity of supply chains worldwide. To support business continuity professionals in helping to assess their supply chains, the Business Continuity Institute has just published its latest Working Paper which uses a series of statistical comparisons from previous studies to look at the influence the number of suppliers an organisation has on the frequency and cost of supply chain disruption.
The research concluded that supply chain complexity does influence the frequency and cost of disruption which represents an important step towards the better understanding of supply chain disruption. Establishing the relationship between the complexity of supply chains to the frequency and cost of incidents will validate efforts by supply chain planners to work towards greater visibility of their supply chains. This also provides additional proof that may be used to justify continuous investment towards further understanding an organisation’s supply chain.
The study does highlight however, that given the implications of this research to decisions made by organisations, it is recommended that further statistical analysis be done to other variables that affect supply chains.
The Supply Chain Resilience survey has been one of the most comprehensive studies of its kind. It has produced useful findings that have guided organisations into imparting resilience to their supply chains. A more thorough study therefore provides greater opportunities to refine this tool and make it even more helpful to organisations worldwide.
To download the full version of the BCI's 'Working Paper Series No. 2: A quantitative analysis of selected variables in the 2013 Supply Chain Resilience Survey', please click here.
To take part in the BCI's 2014 Supply Chain Resilience survey and help further this research, please click here.
You can contact the paper’s author – Patrick Alcantara of the BCI’s Research Department – with any feedback about this particular paper or with any suggestions for future topics.