Figure 31: HOW HAS YOUR ORGANISATION SHARED ITS EXPECTATIONS ON STANDARDS OF SUPPLY CHAIN RISK MANAGEMENT AND BUSINESS CONTINUITY MANAGEMENT WITH SUPPLIERS?
36.7%
Communicated procurement standards associated with business continuity management
46.6%
30.4%
Requested evidence of supplier’s insurance certificates
46.6%
Integrated an evaluation of supply chain resilience and business continuity management to supplier evaluation & assurance processes Included supply chain resilience as a criterion in supplier performance evaluation
25.3%
19.3%
22.8%
34.1%
20.3%
Published a specific procurement business continuity policy
12.5%
13.9%
Requested evidence that supplier business continuity plans have been subject to testing or exercising Requested copies of supplier’s corporate business continuity plans and policies
30.7%
10.1%
20.5%
5.1%
Other
6.8%
0
10%
20%
30%
40%
50%
Greece 2011 Global 2009
The benefits of sharing your risk considerations with suppliers are twofold. First, you ensure that suppliers take steps towards mitigating risk. Asking the right questions is key to assessing what risk management processes are in place and how risky the supplier is. Second, discussing risk management with suppliers sends them a message that this is normal behaviour they should employ with their own suppliers too. Inevitably, there are limitations on how far down the supply chain an organisation can control risks. Organisations generally rely on their suppliers for managing their own suppliers, and the least they expect is a level of comfort that risk management across all tiers of the supplier chain is being handled in an acceptable way. We have seen organisations that go as far as analysing the risks of their suppliers’ suppliers, but this can prove costly and time consuming. The acceptable level of comfort can be reached by building up an understanding of the risks of the supply chain beyond the first tier of suppliers. Slightly more than half (53.9%) of Greek organisations acknowledge that they do not understand their suppliers’ supply chains, versus 46.1% that say they do. It is surprising that more than double the percentage of Greek respondents said they understand risks in all tiers of their supply chain than the global survey respondents (18.5%).
Figure 32: DO YOU UNDERSTAND THE RISKS IN THE SUPPLY CHAINS OF YOUR THIRD-PARTY SUPPLIERS OF PRODUCTS AND SERVIVES AND HOW THESE SUPPLY CHAINS IMPACT YOUR OPERATIONS?
53.9%
No
81.5%
46.1%
Yes
18.5%
50%
60%
70%
80%
0
10% 20% 30% 40%
90%
Greece 2011 Global 2009
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