SMEs globally believe they are well positioned to manage supplier interruption with 55 percent admitting that the loss of the most important supplier would not influence their day-to-day business. However, they might not have full visibility of their supply chains and may therefore be underestimating the risk.
Only one out of seven (14 percent) SMEs globally see their business being significantly affected were they to lose their main supplier, according to Zurich Insurance Group’s (Zurich) third annual global SME survey. Overall 39 percent of SMEs consider themselves at some level of risk from the loss of their main supplier, while 55 percent believe the loss of the most important supplier would not influence their day-to-day business. Earlier surveys that reported on key risks and biggest opportunities are available here.
Nick Wildgoose, Global Supply Chain Product Leader at Zurich Insurance Group, commented: “As discovered recently in the report supported by Zurich and the Business Continuity Institute, there are high levels of supply disruption, seven out of ten organizations admit to not having visibility over their full supply chain, and half of disruptions occur below the first level of supplier. This makes us believe that SMEs probably underestimate their supply chains risk exposure, and we urge them to reassess this.”
Zurich’s third annual SME survey was carried out by the research company GfK. The leaders of 3,000 small- and medium-sized enterprises (0 to 250 full-time employees) around the world were asked to identify up to three risks faced by their business in 2015, and up to three opportunities to grow. A representative sample of 200 CEO/owners, general managers, CFO/treasurers and COO/head of operations from each of the following 15 countries was included: Austria, Brazil, Germany, Hong Kong, Ireland, Italy, Malaysia, Mexico, Morocco, Portugal, Spain, Switzerland, Turkey, United Arab Emirates and the U.S.