Extended supply chains, reduced inventories, and shortened product lifecycles are just some of the factors making disruption of supply chain operations more likely and more costly than ever. Economic losses from supply chain disruptions increased 465% between 2009 and 2011. Shippers report adverse weather as the biggest source of supply chain disruption, followed by extreme volatility in commodity, labor, or energy prices/supply.

Many 3PL and shipper respondents say their organizations are placing a greater focus on supply chain risk and mitigation, but not all are using a full complement of effective tools. Many shippers and 3PLs fall short on their supply chain disruption risk mitigation efforts, most often because of a lack of understanding of available mitigation tools.

Companies that have successfully implemented effective supply chain mitigation plans often apply new thinking to traditional mitigation strategies, such as diversifying rather than consolidating suppliers. Clear-eyed assessment of the current state of the network is the first step to understanding the risk, followed by a well-considered plan of attack to both alleviate the biggest sources of vulnerability and respond when disruptions do occur.