More than 70 percent of businesses experience supply chain disturbance, study findsA new study has revealed that corporate supply chains may not be as secure as companies want them to be.

According to a recent report released by the Business Continuity Institute, 70 percent of companies report experiencing at least one supply chain disruption in 2010.

The survey spoke to businesses in 35 countries across 15 industries and found that severe weather was the most common cause of supply chain delays and interruptions - 53 percent of companies reported problems due to snow, rain, wind, heat or other adverse weather, up from 29 percent last year. Another common problem in supply chain operations was unexpected IT and telecommunications outages, which affected 35 percent of the organizations surveyed.

For 20 percent of these businesses, the supply chain interruptions caused damage to their brand or reputation and another ten percent suffered significant financial losses.

The study also revealed that trying to cut costs by operating in inexpensive countries was a major predictor of supply chain disruptions. Of the businesses that had shifted production to low-cost countries, 83 percent suffered some kind of supply chain problem, mostly issues with transport networks and supplier insolvency. 
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