Where Is Your Supply Chain the Most Vulnerable?
Supply chains are becoming increasingly complex, with operational dependencies upstream, in-plant and downstream. Which links in your supply chain might be most at risk? And what can be done to help manage it? More than 2,500 people took our four-part questionnaire to help uncover and avert potential risks in their supply chains before they emerge, and some of the results are below. Take the test now to see how you compare.
WHERE IS YOUR SUPPLY CHAIN THE MOST VULNERABLE?
Supply chains are becoming increasingly complex, with dependencies upstream, in-plant and downstream. Here are some potential risks.
UPSTREAM DISRUPTIONS
Loss or disruption of the key suppliers, raw materials or inventory necessary for production
- 31% of companies have their primary supplier located in an area prone to severe weather, natural disasters or disruptive political conflict
- 49% of companies rely on a single supplier for 25% or more of their materials
- 52% of companies said they do not have or aren’t sure if they have a trusted network of backup suppliers or a backup inventory plan in place
IN-PLANT DISRUPTIONS
The loss of the equipment, people and processes most critical for production
- 42% of companies either don’t have or aren’t sure if they have policies and procedures in place to protect their data, intellectual property and critical equipment from interruptions
- 44% of companies say replacements or replacement parts for their most critical equipment either are not readily available or they are not sure
- 55% of companies say they either don't have a formal business continuity plan, including backup plans for people, processes and equipment, or they aren't sure if they do
DOWNSTREAM DISRUPTIONS
The loss of distributors, customers and the need for backup plans
- 51% of companies say they have a single distribution center or warehouse from which they ship all of their products
- 36% of companies say they rely on a single customer for 25% or more of their business income
- 43% of companies say they do not have a backup transportation/logistics plan and provider for shipping products or they are not sure
Results based on more than 2,500 manufacturers and other businesses who took the Travelers Supply Chain Pressure Test to identify potential weak links in their supply chains.
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For more information on reducing risk, visit www.travelers.com/resources/supply-chain-management
Have you taken the Supply Chain Pressure Test?
See how you stack up, visit: https://www.travelers.com/quiz/supply-chain-management/supply-chain-pressure
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