Supply chain disruptions-causes financial

According to a recent survey of 560 companies from 62 countries by Zurich Financial services and U.K. Business Continuity Institute, 85% said that they had suffered at least one disruption to their supply chains during 2011 (Veysey, 2011). Listed next, in order, are the major causes of the supply chain disruptions ... 

To maintain supply continuity successfully, sourcing professionals work to open lines of communication between their company s internal functional departments and with external suppliers. Communication reduces the risk of supply chain disruptions. Many areas in a supply chain can cause an interruption in the flow of goods operational, financial. 

Both situations caused massive losses for the companies. These were not only financial losses, but also immeasurable losses such as loss of reputation and customer trust. The decision to move the branch proved to be wrong, as it was ill considered from the point of view of the size and diversity of associated threats. On the other hand, the oil spill in the Gulf of Mexico was the direct consequence of the operational risk. The explosion of the drilling rig was a random event and difficult to predict, with a scenario that turned out to be dramatic. The preparation of corrective measures in the event of adverse effects is a very important element in assuring process continuity in the relationships between the supplier and purchaser. It provides for resistance (resilience, robustness), i.e. a company s capacity to respond to unexpected disruptions and therefore to assure the proper level of operational process in the supply chain (Rice 2003, p. 4). 

Financial Those disruptions caused by adverse changes in the financial condition of any party involved in the supply chain (e.g., bankruptcy, or liquidation of a supplier). 

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