Survey: Supply chain risks decreasing
Report shows less concern about volatility and supply quality issues
Dave Hannon -- Purchasing, 10/1/2009 5:03:38 PM
Want to know what other purchasing pros think?
A new report from AMR Research finds supply chain executives are expressing less concern about issues such as cost volatility and supplier quality or supply issues.
In its quarterly risk survey, of 15 possible supply chain
risks, 10 declined in level of importance and five ticked up. Volatility of
commodity, transportation and energy costs all declined as did concerns about
supplier quality. Issues that increased included supply chain security breaches
and natural disasters, which headed up likely due to hurricane season and the
H1N1 pandemic in
The results of AMR Research's Quarterly Risk Survey show supply chain risks are being downgraded.
the news.
"It appears supply chain executives are taking a collective sigh of relief as supply chain risk levels plunge quarter over quarter," AMR's Noha Tohamy said in the report. "This change in perception is likely a sign of our expectations that the economy has finally bottomed out We're still faced with major risks, but things aren't as bad as they were last year."
Among the risk mitigation strategies cited by supply chain executives, collaboration with trading partners tops the list for the fourth quarter in a row. "Following collaboration is multi-sourcing strategies, performance-based contracts, and increase in IT investment. Interestingly, performance-based contracts have seen the biggest decline this year, indicating that performance hasn't been the primary culprit, but instead the macro conditions that impact suppliers and customers," according to AMR.
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