Trends drive risk-management awareness

Global sourcing strategies, contract manufacturing, and the uncertainty of events put supply chain risk management (SCRM) on the minds of many manufacturers. Boston-based AMR Research recently talked with 89 executives, and their responses reflect the burgeoning trend:

• SCRM is an increasingly important initiative: 46 percent of companies plan to implement or evaluate SCRM technology in the next 12 to 24 months.
• Supplier failure and continuity of supply is the No. 1 risk factor for 28 percent of companies surveyed.
• One-third of companies surveyed report dedicated budget line items for SCRM activities, while 54 percent plan to increase SCRM budgets in the next year. The average spending increase will be 17 percent.
• Top areas for SCRM application spending are sales & operations planning, inventory optimization, business intelligence/supply chain analytics, and supply chain visibility/event management applications.