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Avoid supply chain management risk

As a supply chain specialist, Gustav Ehlert GmbH & Co KG walks a tightrope every day. Because in global supplier networks, the risks of disruption and failure are increasing, but only a few companies have action plans at the ready. Accordingly, they are only able to react to delivery failures in rare cases.

This is the result of a study by the Federal Association of Material, Purchasing and Logistics e. V. (BME) and Riskmethods, a provider of supply chain risk management solutions.

The survey was carried out for the third time. Companies from the food and consumer goods, pharmaceutical / chemical, plant and mechanical engineering, automotive and retail sectors were surveyed.

Results of the survey

The study, which goes by the name of “Supply Chain Risk Management – Challenges and Status Quo 2020”, presents alarming results:

Every second company reports delivery failures and up to five disruptions that have significantly impaired the course of business. In contrast to the previous year, this is an increase of a whopping 28% . As a result, more than half of all respondents complained Loss of sales, production losses ( + 7% compared to the previous year) and increased operating costs ( + 8% ).

Only 14% of the companies were spared in the 2019/2020 financial year. Only a quarter of those surveyed had defined emergency plans in order to be prepared for disruptions.

Where do the risks in supply chain management come from?

Around two thirds ( 67% ) of companies go from political risks that could jeopardize supply chain management. Then follow with 50% the Bankruptcy risks and with 18% the Cyber security risks . The topics of sustainability and compliance are also topical. The supply chain law ensures that companies are exposed to stricter due diligence and liability rules. More than half of the respondents feared serious and even existence-threatening damage to the company through damage to its image, loss of sales or fines because ecological and social standards are not adhered to at the supplier levels. The pandemic risk was also listed for the first time and is in fifth place. Less risks in raw material procurement In contrast to the previous year, companies expect a decrease of 60% .

If the company is not the problem, …

… it must be the sub-suppliers. At least around 45% of those surveyed report that they cause malfunctions and failures. Very few companies know that a supply chain does not consist of just one level, but of several. Only 24% have these deeper levels in mind. Conversely, this means that around three quarters of all companies do not know which risks in supply chain management they are most susceptible to.

8% of the companies cannot even identify the malfunctions and only 6% know how high the financial damage is. And supply chain interruptions can cost a lot of money: there is talk of 250,000 euros to over 1 million euros.

Around 67% of supply chain specialists consider sophisticated risk management to be desirable. Ehlert too. But many companies do not have the necessary capacities and budgets. This includes the use of modern technology and digitally supported analytics. It is precisely this that is of decisive advantage for the flow of information and continuous risk monitoring.

Only 8th % of the companies surveyed monitor their risks automated , 58% manage manually with Excel tables .

Avoid supply chain management risks with Ehlert

Ask your doctor or pharmacist about risks and side effects in supply chain management. Or you can get it right and rely on Ehlert. as Supply chain specialist we know exactly about the dangers and possibilities of supply chain management. Benefit from our experience and solutions in the supply chain.

And the partnerships with well-known manufacturers such as Dick, Naturin, Poly Clip and Dunlop prove us right. Selected brands, high-quality goods – at Ehlert you get everything from a single source, directly from ours Contact Person or conveniently online in Ehlert online shop . This is not only good for your wallet, it is also easy on your nerves. Low transaction and shipping costs as well as our position as a full supplier in the food-producing industry speak for a reliable partnership with us.