One of my frustrations over the years with evangelizing the need for companies to think through all of the supply risk elements of their procurement and operations decisions is how there's often initial interest with executives I speak to, but how only a minority follow through to invest in processes and technology that can give them the upper hand to prevent supply disruptions and quality issues while improving overall supplier performance. I often wonder what it will take for more practitioners to not only get excited about the issue, but to pull the trigger on programs that can make a difference. Perhaps it will be financial proof that investments in supply risk management can pay off on Wall Street.
This is why I was particularly excited to see Supply Chain Digest site a study that quantifies the stock price impact of supply disruptions. The above-linked article notes that companies who announced supply chain disruptions "had stock prices that significantly lagged their peers over a three-year period ... When controlling for factors such as the size of the company, vertical industry, etc. ... companies announcing Supply Chain Disruptions experienced stock prices that were down on average between 32-41% from their industry peers over those three years, representing tens of millions or even multi-billions of dollars of market capitalization."
If that's not financial proof you can take to your CFO or CEO to push for programs and technology to not only predict and model supplier operational and financial viability, but to improve overall supplier performance and quality, then what is?