I recently came across an insightful article (Beware of Risk at Low-Tier Suppliers, Nov. 2011) that points to a growing need for procurement departments to increase their focus on sub contractors from main suppliers.
Referencing a global survey by the Business Continuity Institute, the article notes that about 85 percent of companies suffered at least one disruption in their supply chain, and 40 percent of those disruptions result from issues below immediate vendors.
Some of my other key takeaways from the article:
With so much at stake, it's important to take a comprehensive view of your entire supply-chain network. Remember, any player can become a key player, especially when it comes to potential risk of costly disruptions!
- L Srinivasan