Supply chain failures can cause serious damage to a company's ability to operate and its reputation, an expert has said.
Vinod Singhal, professor of operations management at Georgia Tech College of Management, told Continuity Forum that hitches in the supply chain can have severe ramifications for businesses.
"Disruptions in the supply chain devastate corporate performance, firms continue to operate for at least two years at a lower performance level after experiencing a disruption," he said.
His comments were based on research carried out by his organisation which showed setbacks led to a downturn in companies' stock prices and profitability.
In addition, it doesn't matter what the problem can be attributed to, the upshot is the same and he also warned that supply chain disruptions are on the rise in many industries.
Kevin O'Marah, group vice president at AMR Research, said firms should seek to integrate product and process optimisation programmes with their supply chains to boost efficiency.
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