BBK/IndustryWeek Study Reveals Concerning Results About Supply Chain Risk … – MarketWatch (press release)

by admin on September 5, 2013

SOUTHFIELD, Mich., Sep 05, 2013 (BUSINESS WIRE) —
–50% lack visibility of supplier performance to assess financial viability

–One-third have halted/delayed production in past 12 months due to supply chain capacity/resource issues

BBK, in partnership with Penton Research and IndustryWeek, today
announced the results of a survey which points to a gap between
perceived strength and actual knowledge of potential problems in
manufacturers’ supply chains.

To address supply chain threats, 28 percent of respondents said they
have shifted from overseas to domestic suppliers in the past 12 months.
Nearly 70 percent of these respondents cited transportation, shipping
and logistics costs as the most significant factors in decisions to

“We’ve seen a greater focus on reducing non-production costs and
eliminating potential delays by using domestic suppliers,” said William
G. Diehl, chief executive officer at BBK. “Though there’s value in
implementing re-shoring initiatives, we know that effective application
is the key to successful risk mitigation.”

Even though manufacturers are taking steps to strengthen supply chains,
more than half of those surveyed felt that they did not understand the
performance of their tier 1 and tier 2 suppliers well enough to
adequately assess financial viability.

“Blind spots around the financial and operational viability of suppliers
pose a tremendous risk to the supply chain and set the foundation for
major capacity constraints,” Diehl said. “These constraints can hinder
not only the growth of individual companies, but of industry segments as

More than one-third of survey respondents said that over the past 12
months they had to halt or delay production due to supply chain capacity
and/or resource issues. 84 percent of those impacted cited late
deliveries and 55 percent said they paid premium shipping costs due to
production stoppages.

“Disruptions to the supply chain can cause expensive delays and reduced
profitability,” said Diehl. “Through our work with some of the largest
automotive companies in North America, we have developed a deep
understanding of supplier risk management. The most important elements
of a healthy supply chain are integration and transparency through
improved communication, reporting and financial analysis of suppliers.”

BBK’s clients include numerous IW U.S. 500 companies, giving the firm
strong and direct line of sight into best practices across industries.
The firm’s expert advisors include many former C-level executives
skilled in operational performance, mergers and acquisition services and
financial restructuring and revitalization.

The BBK IndustryWeek survey was conducted between July 11 and July 19,
2013 and included responses from 374 manufacturing executives in a broad
range of industries on various supply chain-related issues and potential
concerns. To download the BBK/IndustryWeek Supplier Risk Survey, visit

About BBK

BBK is an international business advisory firm with its roots in the
automotive manufacturing industry. Founded in 1977, BBK has, over the
past several years, diversified its service offerings to provide
innovative solutions to a broad base of manufacturing clients worldwide.
Our teams of seasoned executives can apply their unparalleled problem
solving expertise at middle-market prices, all with global reach.

BBK and its wholly-owned subsidiary, Performance Improvement LLC, are
headquartered in Southfield, Mich., and serve clients globally through
offices in Los Angeles, Calif.; Nashville, Tenn.; Frankfurt, Germany.
For more information on BBK or Performance Improvement, please visit


        For BBK 
        Shannon McGhee, 312-729-3659

Copyright Business Wire 2013

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