Global Supply Chain Threats

The world's an increasingly scary place and supply chains are at greater risk then ever-that's the consensus of a recent poll of financial executives from Britain and North America who say the top threat to their revenues is not directly due to terrorism or natural disaster, but a breakdown in their supply chain.

Indeed, executives have more to worry about then ever and the stakes are higher if something should happen. It used to be that backing up data was all that was required as a plan for disaster. But, the threat of terrorism changed everything. It wasn't just lightning, floods, and labor strikes that could disrupt business; it was terrorism, too. Furthermore, the disruptions have bigger implications as supply chains have become more global and complex.

According to the Economist Intelligence Group, the growth in outsourcing has complicated the matter. "Removing back-office business services to low-cost (and frequently more hazardous) locations leaves firms vulnerable to hard-to-monitor disruptions in those faraway places."

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