Top 10 supply chain risks to watch out for in 2019
In the past year, major incidents have triggered varying levels of disruption to the otherwise smooth operation of today’s modern, sophisticated supply chains.
Despite preventive measures to mitigate the impact of interruptions, the reality is that supply chains still remain vulnerable to external risks that are beyond its control.
In the event of unforeseen circumstances such as transportation delays, cargo theft, natural disasters or cyber-attacks, the flow of cargo is directly affected, incurring additional short-term costs and resulting in delivery challenges.
At the macro level, shifts in local, national and international trade and regulatory policies can also upset the fundamental economics of established supply chains.
7 key issues that defined the supply chain risk landscape in 2018
- Trade disputes
The rise of protectionist measures and withdrawal from free trade agreements
- Supply chain cyber attacks
Increased targeting of supply chain and transport infrastructure
- Climate change
Higher frequency of natural disasters and extreme weather events
- Port congestion
Delays and unpredictable schedules affecting cargo operations at port
- High fuel prices
Strikes and protests over high fuel prices causing fuel shortages and disruptions to road freight
- Cargo theft
Caused by instability and new modus operandi for truck theft
- Industry zone shutdowns
Enforced temporary or permanent shutdowns to reduce the environmental impact of industrial operations
Such incidents, while tough to predict and anticipate, are crucial in shaping the supply chain risk landscape every year.
To prepare for the challenges ahead in 2019, companies should recognize the implications that the top 10 risks — identified in the latest Resilience360 report — might have on its supply chain networks.
To understand the supply chain risks in greater detail, read the full Resilience360 Annual Risk Report 2018 today.