Only half of businesses aware of the threat they face from supply chain outsourcing are taking steps to protect themselves, it has been found.
In a survey conducted by the Chartered Management Institute, 37 per cent of businesses said that they are aware of the risks associated with supply chain disruption, although only 19 per cent said they were taking precautions in order to minimalise potential damages.
Supply chains are now becoming outsourced much more often, according to the findings, and this has prompted a warning from Norwich Union Risk Services (Nurs).
Alan Trueman, business interruption risk adviser for Nurs, has warned businesses that they must have a contingency plan in place for an instance where an item on their supply chain suddenly changes, such as haulage companies are now seeing with rising fuel costs.
Mr Trueman has advised that companies outsourcing their supply chain management should still keep a strict eye on possible threats to the chain's stability, and ensure that it has a means of protecting itself from any potential upset.
Another option is to recruit a consultancy firm to assist in the breakdown of the supply chain, in order to give a clearer idea of where potential risks lie.
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