The past few years have highlighted serious deficiencies in prevalent supply chain strategies and the major risk that disruptions pose to corporate success. Loss of sales and market share are the most visible and measurable impacts. McKinsey estimates that shocks lasting a month or longer are occurring every 3.7 years and companies can expect to lose 42% of one year’s EBITDA every decade due to supply chain disruptions.
Herculean efforts by Procurement and Supply Chain departments to keep supplies flowing have prevented even more extreme disruptions than what we’ve experienced, but have inadvertently created additional risks.
