Crippling supply chain disruptions such as the Suez Canal incident and the Port of Yantian crisis are costing large companies an average of $184 million annually, according to the Interos Annual Global Supply Chain Report.
In a new survey commissioned by Interos, 94% of the 900 IT and procurement decision-makers across the US and EU reported a negative impact to revenue resulting from supply chain disruption.
Respondents attributed supply chain disruption to a variety of risks: including cyber breaches, financial risk, and environmental, social, and governance transparency issues.
The study noted that some 83% of respondents found that their firms had suffered reputational damage as a result of disruption.
Cybersecurity is another key concern facing business owners responding to the survey. In the wake of recent attacks on the likes of HMM and Colonial Pipeline, more that three-quarters (77%) said they have faced at least one cyberattack on their supply chain in the last year.
Once again, the global trade community has highlighted the importance of supply chain visibility in preventing bottlenecks, with half of respondents arguing that supply chain security and resilience will be their highest priority in two years’ time.
The deployment of emerging technologies such as artificial intelligence and data analytics was highlighted as a prime risk-mitigation tool for businesses – however just 34% of organisations monitor their supply chain outlook on a continuous basis using new solutions.
Jennifer Bisceglie, CEO of Interos, commented, “Our survey results underscore the growing importance of supply chain operational resilience in the globally interconnected world that we all live and operate in.
“We can no longer cleanly separate digital and physical supply chains, which is driving a need for greater transparency into hidden supply chain risks, relationships and reliances, which companies are recognising as critically important to protecting both the bottom line and corporate reputation.”
The report echoes many industry concerns on the domino effects of cyber crime and the ongoing impact of COVID-19 like that currently destabilising the Port of Yantian.
A.P Moller Maersk (Maersk) has highlighted crippling supply chain events including the Yantian Port crisis and Suez Canal incident as a ‘worrying’ global trend affecting global trade.