Companies are seeking to better understand their global supply chain risk exposures in higher rates than ever before, according to a survey by The Smart Cube. In 2020 alone, the company saw 167% increase in supplier risk-related inquiries, and 2021 is no different.
The Coronavirus disease (COVID-19) pandemic forced companies to evaluate their supply chain and their suppliers. Companies have begun implementing more rigorous risk-management programs as it is no longer safe to solely rely on first tier suppliers.
“The pandemic made ‘supply chain’ a household term,” said Omer Abdullah, MD and Co-Founder of The Smart Cube. “Never before have businesses and consumers alike suffered so acutely at the hands of a severely disrupted global supply chain. As a result, businesses have been given an urgent wake up call to gain greater visibility into the risks associated with a globalised supplier base. However, as customers tell us, it’s not just the pandemic driving their inquiries.”
Per The Smart Cube:
- Procurement is increasingly working to digitise operations as data volumes continue to grow, and to capitalize on untapped cost savings and risk management opportunities.
- The Smart Cube expects the trend toward careful supply chain risk evaluation to continue for the foreseeable future as companies work to re-evaluate their supply chains to meet the new need associated with ongoing market volatility.