SCRM Enhances Business Continuity

SCRM is a crucial and often overlooked element of maintaining business continuity. Consider this fact: 30% of companies that experience a major risk event are out of business within 24 months of the event. But that doesn’t have to be you.

What Does SCRM Mean for Business Continuity?

A business continuity plan is a strategy to ensure that a company can maintain its core business processes in all circumstances. For companies that rely on a supply network, it is crucial to ensure that supply chain risk management is part of the business continuity discussion.

According to the Business Continuity Institute, companies who experience supply chain disruptions also commonly experience resulting negative consequences such as an increased cost of working, a loss of revenue, damage to brand reputation and more. To mitigate these effects—or perhaps even avoid them entirely—a full-fledged supply chain risk management program is an absolute necessity.

To have the most effective business continuity plan possible, make sure it addresses the risk in your supply chain.

The Case for SCRM and Business Continuity

  • If you think a supply chain disruption is a once-in-a-decade event, think again. 88% of companies report experiencing a supply chain disruption in the last 12 months. (Source: Supply Chain Resilience Report 2021, Business Continuity Institute.) This makes an SCRM program a must for business continuity.
  • A disruption in your supply chain can be expensive—so taking steps to avoid them is something that brings real value to an organization. 21% of companies lost more than $250.000 in the last 12 months due to supply chain disruptions. (Source: Supply Chain Resilience Report 2019, Business Continuity Institute.)
  • More than 40% of COVID-related supply chain disruptions occurred at tier 2 or even below. (Source: Supply Chain Resilience Report 2021, Business Continuity Institute.) A comprehensive business continuity plan requires an SCRM program that does more than manage just your key suppliers.

Enhance Business Continuity Using SCRM

  • Build consensus with key stakeholders that SCRM is a vital component of business continuity.
  • Understand that SCRM is a journey that involves multiple business processes and functions—and the time to get started is now.
  • Consider adopting a solution to jumpstart your SCRM journey and benefit from proven best practices.
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