One in twelve large businesses is substantially reliant on high-risk suppliers, according to research commissioned by procurement advisors Achilles.
The survey of some 200 UK businesses found that eight per cent believe that more than half of their suppliers are “high risk.” A further 18 per cent think between 11 and 50 per cent of their suppliers are high risk.
Adrian Chamberlain, chief executive of Achilles, said: “Companies are becoming far more vulnerable to supplier failure as they become more globalised, and as they seek to offset business complexity by outsourcing increasingly larger proportions of their activity to third parties,”
“Distant sourcing and extended global supply chains are not only raising levels of supplier risk but are creating more diverse forms of risk. If purchasing organisations are to mitigate these very real supply chain risks they must gather and manage information on suppliers on a global basis.”