Risk Of Global Supply Chain – 74% of supply chain companies have experienced at least one supply chain disruption, according to a recent study by the Business Continuity Institute. A similar majority (72%) admitted that the supply chain was completely missing. IBM Project Executive Lou Ferretti and Spend Matters Principal Researcher Pierre Mitchell discussed supply chain risks in a webinar on 5/4. Both highlighted the challenges and complexities of supply chain risk and how to overcome them. One of the issues that came up frequently was visibility into the supply chain.
70% of senior supply chain executives identified supply chain visibility as their top threat. The diagram above clearly shows what managers actually face when dealing with risk. Despite this fact, a vision based on the above 4 steps is necessary to combat the risk. By opening operations earlier, companies can better assess the situation and their opportunities. This will help mitigate the effects of critical incidents. Insights can be improved through analytics tools, careful forecasting and close monitoring of the supply chain. Full visibility may be difficult to achieve, but it leads to longer response times and more effective responses.
Risk Of Global Supply Chain
Vision is the biggest risk factor, but the benefits of vision are countless. Consider hiring a dedicated supply chain risk management team. An effective team will be experienced in adverse events and have the knowledge to identify various risks and their impacts. Teams can develop and refine models to identify and respond to hazards, and use analytical tools for accurate predictions. Having a dedicated risk management team ensures rapid visibility and response.
Combating Business Uncertainty Through Vendor Risk Management
“MEP has created a well thought out and challenging program for supply chain management teams. They are challenging our current supply chain and paradigm – forcing us to rethink what we do and how we do it. It is used as a ‘ ways to change our business.” Risks are increasing in global supply chains, according to the CIPS Risk Index. Picture h…
Risk is increasing in global supply chains, according to the Risk Index from the Institute for Regulatory Procurement and Supply (CIPS). This number is the highest since 2013 and is due to supply chain growth in Western and Central Europe, Eastern Europe, the Middle East, Latin America and Sub-Saharan Africa.
The index was produced by Dun & Bradstreet economists for CIPS, which monitors the impact of economic and political developments on the sustainability of global supply chains. The trend of increasing supply chain risk is linked to the collapse of the political consensus on globalization, with the World Trade Organization reporting on average 22 new trade restrictions per month in their latest report.
This trend is most pronounced in Western Europe, which increased from 2.60 in the previous quarter to 2.63 in the third quarter. Uncertainty about the post-Brexit relationship between the UK and the EU is weighing on business and business sentiment in the UK and the region.
Labor Exploitation In Global Supply Chains
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