Risk Management

Planning & Implementation

High-tech companies are aware of potential disruptions to their supply chain
but fail to take the proper steps to minimize these possible threats. Companies
need to employ multiple strategies to minimize the risk to the supply chain.

Risk & Disruption

Extended supply chains have more risks of disruptions as they reach further and involve more partners.
The biggest areas of concerns for companies:

57% 53% 40% 40%

CYBERSECURITY LABoR ISSUES INTELLECTUAL FINANCIAL FLoW
PRoPERTY

*survey allowed for multiple responses

57% SAY THAT DATA LoSS, SUCH AS CATASTRoPHIC

SYSTEM FAILURE oR DATA FLoW DISRUPTIoNS, ARE
THEIR BIGGEST SUPPLY CHAIN CYBERSECURITY THREAT

Planning to Minimize Risk

Despite the high perceived risk of disruption, strategic risk mitigation planning is not well developed
in many supply chains. There are substantial gaps in how well prepared companies are and what their
response is likely to be when a risk becomes an actual threat.

74% oF SUPPLY CHAIN EXECUTIVES HAVE No FoRMAL

RISK MITIGATIoN PLAN, DoN’T KNoW IF THEIR
CoMPANY HAS A RISK MITIGATIoN PLAN, oR THEY
HAVE oNLY LIMITED CoNTINGENCY PLANS
74%
SoLUTIoN:
CoMPANIES SHoULD BE LooKING BEYoND THE RISK MANAGEMENT PHASE To
ENSURE THAT THEIR SUPPLY CHAINS ARE PREPARED To TAKE ACTIoN IN A CRISIS.
(Source: UPS CITC Survey)

Partnering to Minimize Risk

36% oF RESPoNDENTS 18% SAY VISIBILITY
HAVE No FoRMAL REACHES THE FIRST
REqUIREMENT FoR
SUPPLIERS To 36% 18% oR SECoND TIER
oN THE SUPPLY
SHARE RISK Few supply chain AND THE
MITIGATIoN/ partners are required to DISTRIBUTIoN
CoNTINGENCY demonstrate their own risk SIDES oF THEIR
PLANS. mitigation or contingency SUPPLY CHAINS.
plans, putting extended
supply chains at greater
risk of disruption.
22% REqUIRE 24% SAY THE
SELECT SUPPLIERS GREATEST VISIBILITY
AND LoGISTICS
PARTNERS To SHARE 22% 24% UP THEIR SUPPLY
CHAIN IS FoR
RISK MITIGATIoN PLANS. CoMPLIANCE.

SoLUTIoN:
ToP 2 STRATEGIES To MITIGATE AND MANAGE FUTURE RISK IN THE SUPPLY CHAIN:

#1
IMPRoVING CoLLABoRATIoN
#2
ENABLING BETTER SUPPLY
WITH SUPPLIERS CHAIN VISIBILITY

(Source: UPS CITC Survey)

SUMMARY:
It’s critical to take a holistic view of the supply chain and focus on all aspects
of risk management from the front end to the back end, making sure not to
overlook the returns process.

(Source: UPS CITC Survey)

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