How to protect shareholder value
It's logical that supply chain disruptions will have an adverse effect on a company's market share, reputation and share price. A study by Oxford Metrica showed that share prices were 40% less volatile in companies with advanced risk management.
In this article, Philip Johnson of FM Global discusses the impact of sudden supply chain disruptions, with reference to recent natural catastrophes in Europe and Asia. He concludes that resilience must be factored into the design of a supply chain.
This article first appeared in Supply Management on 4th June 2014.