Did your supply chain hit a rough patch of road last year? You’re not alone. In fact, 99% of companies responding to a recent Aberdeen Group survey encountered supply chain disruptions, and more than half took a hit in the wallet as a result.

The supply chain disruptions reported most commonly:

• supplier capacity fell short of demand (56%)
• shortages or price increases for raw materials (49%)
• unanticipated customer demand changes (45%)
• shipments that were delayed, damaged or misdirected (39%), and
• shortages or price hikes for fuel (35%)

The key to staying ahead of these disruptions is to develop a risk management plan, experts say — essentially anticipating what problems could occur and having an action plan or a back-up supplier.

Problem: Not even one-third of supply chain operations are working to manage the basic risks.

The other critical factor: Organization and communication within your own company. The decision makers need to know of all possible risks before making a move — something that doesn’t happen enough, experts say.

Also, your internal processes need to be well-organized enough that there’s visibility into all critical stages of the operation — warehouse, transportation, working with supply chain partners.

Tags: demand, fuel, shipments, suppliers, supply chain