Supply chain management is an essential component of modern business operations. With the growing global economy and complex network of suppliers, manufacturers, and distributors, companies face increasing risks and challenges. One critical aspect of managing these risks is conducting thorough supply chain due diligence.
Poll results
In our most recent LinkedIn poll, we asked our social media followers how important is supply chain due diligence as part of your risk management strategy?
Supply chain due diligence: what we found
Extremely important – 50%
The results of the poll indicated that 50% of respondents considered supply chain due diligence to be “Extremely Important” as part of their risk management strategy. This finding highlights the growing recognition of the critical importance of supply chain management in today’s business landscape.
Companies are facing increasingly complex and interdependent supply chains, and a failure in any part of the chain can have significant consequences for businesses, from disrupted operations and reputational damage to financial losses. By prioritising due diligence, companies are taking a proactive approach to identifying and mitigating potential risks, ensuring the long-term stability and success of their supply chain.
Quite important – 25%
While 50% of respondents deemed supply chain due diligence as “Extremely Important,” 25% considered it to be “Quite Important.” This suggests that there is still a significant portion of the surveyed professionals who recognise the value of it, but may not view it as a top priority in their risk management strategy.
It could be due to a lack of resources, limited understanding of supply chain risks, or a belief that other risk mitigation measures are more effective.
Somewhat important – 0%
Interestingly, no respondents considered supply chain due diligence to be “Somewhat Important.” This result could indicate that the surveyed professionals either have a strong commitment to conducting thorough due diligence or view it as a non-negotiable aspect of their risk management strategy. On the other hand, it could also mean that there is a lack of understanding or awareness of the value of this, leading professionals to either prioritise it highly or ignore it entirely.
In either case, it highlights the need for continued education and awareness about the importance of due diligence in risk management. By prioritising and integrating it into their overall strategy, companies can ensure that they are fully equipped to handle any potential risks and maintain the stability and success of their supply chain.
Less important – 25%
Finally, 25% of respondents considered supply chain due diligence to be “Less Important.” This result is concerning as it suggests that there is still a significant portion of professionals who do not fully understand the importance of supply chain management in mitigating risk. These individuals may not fully appreciate the potential consequences of a failure in the supply chain and may be more focused on short-term goals and cost-cutting measures.
As above, this result highlights the need for continued education and awareness about the value of due diligence. By prioritising and making it a central component of their risk management strategy, companies can ensure that they are protected against potential risks and poised for long-term success. Companies that neglect to prioritise this may be putting their operations and bottom line at risk.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your supply chain strategy, get in touch with us.