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UK Manufacturers Shrink Supply Chains as a Business Continuity Measure
Monday, 01 October 2012 09:18

A study by the manufacturers' organisation EEF, has revealed that many UK companies are looking to re-shore production in response to supply chain risks.

The average manufacturer has 190 suppliers, with one in five saying half their suppliers were located outside the UK. However according to the study increasing numbers of manufacturers are bringing production back in-house and increasing their hunt for local supply capability in response to increased disruptions to supply chains caused by recession and natural disasters.

The globalised nature of manufacturing and its supply chains brings a range of benefits, however there are risks attached and a potential for disruptions to business continuity when things to wrong.

UK companies are very aware of future threats to supply chain continuity with one third of companies viewing it as an issue requiring Board level attention. Companies have reported damage to productivity, revenue and orders from a range of local, international and economic disruptions to their supply chains over the past two years. This has led a vast majority of manufacturers to assess where potential vulnerabilities might lie and take steps to shore up the resilience of their whole supply chain. The survey indicated that as a result of recent disruptions, 60% of companies surveyed monitor their immediate suppliers, 11% of companies monitor their entire supply chain and 16% of companies do not monitor their suppliers at all.

 

 


 

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