Papers

Supply Chain Risk 2.0 – Understanding Supplier Networks and Supply Connections

To survive in today’s complex and inter-dependent supply chains, companies need supplier and material insight that allows them to fully understand and act upon shifts in the market, mitigate cost risk, and ensure business continuity. By IHS

March 20, 2016

The Only Constant Will Be Supply Chain Volatility
It isn’t your imagination. Supply chain costs are on the rise. Sector prices have exploded from 2002 to 2011 with an average annual growth rate of 15% (See Figure 1).

This surge in prices has impacted profitability and complicated budget planning. Worse, higher prices have been joined by higher volatility in recent years as upside risk and downside risk have combined to create wild price gyrations.

Cost-trend analysis indicates that costs are more volatile now than they have been in recent decades. And, beyond volatile, today’s market is rife with potential supply disruptions, shortages, and potentially crippling disasters.

To survive in today’s complex and inter-dependent supply chains, companies need supplier and material insight that allows them to fully understand and act upon shifts in the market, mitigate cost risk, and ensure business continuity.

Keeping up with rapidly fluctuating costs is a challenging job, but it has to be done to protect profitability. The alternative is to become victimized by volatility and unforeseen supply chain failures.

Standard Deviation in Monthly Price Changes

Figure 1: Standard deviation of gold, silver, oil, aluminum, copper, coee, sugar, rubber, cotton, corn, wheat, lumber, steel scrap, steel plate, HR carbon steel sheet. Source: IHS


Log in to download this paper.
Auto-login on future visits.
Forgot your password? · Not a member? Register today!

What’s Related

Resources

The New Map of Global Gas
A major research study offering insight into how supply, demand, prices, and markets for natural gas will change as nontraditional sources of…
Supply Chain Risk 2.0 – Understanding Supplier Networks and Supply Connections
To survive in today’s complex and inter-dependent supply chains, companies need supplier and material insight that allows them to fully understand…
Chemical Supply Chain Insight: 5 Steps to Becoming More Resilient
Whether you’re a global or regional player in today’s markets, you must have a handle on the events that will impact your business.
More Resources