The Ripple Effect

How manufacturing and retail executives view the growing challenge of supply chain risk

Download the report: "The ripple effect."

Supply chains are becoming highly sophisticated and vital to the competitiveness of many companies. But their interlinked, global nature also makes them increasingly vulnerable to a range of risks.

A number of internal and external forces are converging to raise the risk ante for global supply chains. Some are macro trends such as globalization and global connectivity, which can make supply chains more complex and amplify the impact of problems that may arise. Others stem from the push to improve efficiency and reduce operating costs. Although trends such as lean manufacturing, just-in-time inventory, reduced product lifecycles, outsourcing, and supplier consolidation have yielded compelling business benefits, they have also introduced new kinds of supply chain risk and reduced the margin for error.

In mid-2012, Deloitte which was recently named a Vanguard Leader, based on capabilities, by Kennedy in Supply Chain Risk Management Consulting* surveyed 600 executives at manufacturing and retail companies to understand their perceptions of the impacts and causes of these risks, the actions they are taking to address them, and the continuing challenges they face. Respondents represented large and small companies in a variety of industries, and from countries around the globe, with the majority located in North America, Europe and China.

The survey’s key findings include:

Supply chain risk is a strategic issue.
Margin erosion and sudden demand changes often cause larger impacts.
Concern about extended value chain.
Supply chain risk management not normally considered effective.
Companies face a wide variety of challenges.
Many companies lack latest tools.

Download the report: "The ripple effect: How manufacturers and retail executives view the growing challenge of supply chain risk."

Press releases

	Deloitte Survey: Executives face growing threats to their supply chains According to the global survey of 600 executives, supply chain disruptions are not only more frequent, they are also having a larger negative impact. Read the press release for more information.
	Deloitte named a leader in supply chain risk by Kennedy Deloitte has been named a global leader in the Kennedy Vanguard of Supply Chain Risk Management Consulting Providers in Kennedy’s Supply Chain Risk Management Consulting, 2012-2015 report covering the supply chain risk market.

Related media hits

	Executives see growing supply chain risks, costlier disruptions CFO Journal \| February 27, 2013 The article mentions the recent Deloitte Consulting LLP report, The Ripple Effect, and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks faced by companies in the increasingly complex global supply chain system.
	Supply chain threats increasing but risk management is not Supply Management \| February 13, 2013 The article mentions the recent Deloitte Consulting LLP report, The Ripple Effect, and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks faced by companies in the increasingly complex global supply chain system.
	Deloitte survey: Executives face growing threats to their supply chains Supply Chain Management Review \| February 11, 2013 The article mentions the latest Deloitte Consulting LLP report, The Ripple Effect, and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks faced by companies in the increasingly complex global supply chain system. This article was also featured in Logistics Management.
	Is your risk management program itself a source of risk? Industry Week \| February 7, 2013 The article mentions a recent Deloitte Consulting LLP's report titled, The Ripple Effect and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks companies face in the current global and increasingly complex supply chain system.
	Q&A: How to handle your supply chain when natural disasters strike Industrial Distribution \| November 9, 2012 Siva Paramasivam, senior manager, Deloitte Consulting LLP, was interviewed on how companies can mitigate supply chain risks when natural disasters strike.
	The hurricane in your supply chain’s future Manufacturing Executive \| November 5, 2012 Siva Paramasivam discusses his insights on mitigating supply chain risks in the event of hurricanes.
	Command and control: Managing supply chain risk CIO Journal \| November 1, 2012 Kelly Marchese, principal, Deloitte Consulting LLP, discusses four technologies that are helping global companies create stronger, more resilient supply chains.

Meet our 2013 spokespeople

	Kelly Marchese Principal, Deloitte Consulting LLP
	Siva Paramasivam Senior Manager, Deloitte Consulting LLP

	Executives see growing supply chain risks, costlier disruptions CFO Journal \| February 27, 2013 The article mentions the recent Deloitte Consulting LLP report, The Ripple Effect, and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks faced by companies in the increasingly complex global supply chain system.
	Supply chain threats increasing but risk management is not Supply Management \| February 13, 2013 The article mentions the recent Deloitte Consulting LLP report, The Ripple Effect, and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks faced by companies in the increasingly complex global supply chain system.
	Deloitte survey: Executives face growing threats to their supply chains Supply Chain Management Review \| February 11, 2013 The article mentions the latest Deloitte Consulting LLP report, The Ripple Effect, and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks faced by companies in the increasingly complex global supply chain system. This article was also featured in Logistics Management.
	Is your risk management program itself a source of risk? Industry Week \| February 7, 2013 The article mentions a recent Deloitte Consulting LLP's report titled, The Ripple Effect and quotes Kelly Marchese, principal, Deloitte Consulting LLP, on the risks companies face in the current global and increasingly complex supply chain system.
	Q&A: How to handle your supply chain when natural disasters strike Industrial Distribution \| November 9, 2012 Siva Paramasivam, senior manager, Deloitte Consulting LLP, was interviewed on how companies can mitigate supply chain risks when natural disasters strike.
	The hurricane in your supply chain’s future Manufacturing Executive \| November 5, 2012 Siva Paramasivam discusses his insights on mitigating supply chain risks in the event of hurricanes.
	Command and control: Managing supply chain risk CIO Journal \| November 1, 2012 Kelly Marchese, principal, Deloitte Consulting LLP, discusses four technologies that are helping global companies create stronger, more resilient supply chains.