Only 61 per cent of logistics companies have a plan B ready if major disruptions occur. It is therefore high time that companies in transport and logistics implement a more mature approach to risk management. So says ABN Amro in the report 'Risk management 2.0: your new hallmark in the quality chain'.
Aware, but not prepared
In the report, 90 per cent of logistics service providers and transport companies state that they are aware of the key operational and strategic risks. However, a large proportion of them are not prepared for these potential disruptions. Only half of the companies surveyed quantify the financial impact this would have on their business operations.
Greater risk of disruptions
Due to advancing globalisation and heavy reliance on IT, the logistics chain is becoming increasingly complex and vulnerable. Furthermore, transparency within the chain is diminishing due to the outsourcing of logistics activities and collaboration between multiple parties. This increases the risk of disruptions. ABN Amro argues that logistics service providers can set themselves apart by implementing risk management. “By preparing more effectively for risks, logistics service providers and transport companies can limit damage and losses, better assess and capitalise on opportunities, and also emphasise their reputation as reliable logistics partners.”
Getting staff on board
The survey shows that 58 per cent of business owners are on the right track, but there is still room for improvement. “Although these companies have formalised their risk management processes, they have not yet embedded them throughout the organisation or applied them systematically. They are also still looking for a way to instil risk management into the DNA of their staff. Particularly at a time when margins are under pressure and cost-cutting has been elevated to a strategic objective, risk management supports decision-making,” says Bart Banning, Sector Banker for Transport and Logistics at ABN AMRO. Banning emphasises that risk management is tailor-made for each company. Its implementation therefore also depends on the size of the business, its complexity and the scope of its logistics services.
ABN Amro is hosting the online seminar 'Risk Management 2.0' on 28 January .
Editorial LogistiekProfs
