As U.S. Midwest logistics managers deal with unprecedented flooding, a new report on risk addresses the impact natural disasters can have on supply chains
Supply chain risk management company Resilience360 has released its first annual Risk Report, which outlines the Top 10 Supply Chain Risks for 2019 - a summary of threats that deserve particular attention during 2019 and beyond.
In addition to global risks, like international trade tensions and the growing impact of climate change, the Risk Report is designed to provide the intelligence needed to help organizations re-evaluate their specific risk strategies and adapt their networks accordingly.
“The supply chain risk environment is dynamic and continually evolving. At Resilience360, our teams of analysts monitor hundreds of risk events every day, tracking their impact on the supply chains of dozens of industries,” said Tobias Larsson, chief executive officer, Resilience 360.
“In our first annual Risk Assessment report, we’ve used that experience to highlight a portfolio of threats that deserve particular attention during 2019 and beyond.”
Below is a quick summary of the Top 10 trends to look out for in 2019, to examine the implications for every supply chain network.
“The modern economy relies on the smooth operation of complex and sophisticated supply chains,” said Shehrina Kamal, director, Risk Intelligence, Resilience360.
“The intelligence provided in the annual Risk Assessment report is designed to help evaluate the risk environment for every industry and provide insights needed to evolve strategy, adapt networks and protect bottom lines.”
“Modern supply chains are vulnerable. Transportation delays, theft, natural disasters, inclement weather, cyber-attacks, and unexpected quality issues can disrupt cargo flows, creating short term costs and delivery challenges.”
“Resilience360 strives to understand these risks and gain a common understanding of how they impact supply chains across countries, regions, industries, and organizations in measurable ways,” she adds.
In an interview with Logistics Management, she added that the report contained few surprises.
“The predictions are based on developments that we observed and analyzed over the course of 2018, so most of them were expected to some degree,” she said.
“The increase in major container ship fires - an average of one every 60 days in 2018 - continues to be a trend we are following closely, and it is eye-opening to see the deep impact that cyber attacks have had on the various type of supply chains. Another development that quickly became more significant in our research was the continued rise and impact of global trade tensions, whether it be in the shape of manufacturing network restructuring and/or supplier insolvencies.”
Image: DHL Resilience360
Related Article: The Emerging Business of Supply Chain Risk Management
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