In its Supply Risk Increases While the Market Stands Still report, Aberdeen finds that simple disruptions in the supply chain can have ripple effects that last for years and cost millions of dollars so it is essential to know as much as possible about supplier performance. Best in class enterprises know what to look for to manage supplier performance and risk, and more importantly, to anticipate potential problems. They know that supply chain performance management is risky business.
The study found that although 62 percent of enterprises expected supply risk to increase in the next three years, only 49 percent of organizations have bothered to implement a supplier performance measurement and risk management program.
The rush by many companies to go offshore has further exacerbated the problem, with many leading CEO's leaving procurement to develop a risk strategy, something, the authors of the report believe, many procurement functions simply do not possess the skill sets for.

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