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Supply Chain Risk: What Can We Learn From 2018 Challenges?

April 3, 2019 Leave a comment DRI Admin

To prepare for the future, look to the past – especially when it comes to supply chain risks. Last year’s major hurdles, from extreme weather to cyber attacks to industry production shutdowns, will result in new trends for 2019, including trade wars, material shortages, and other headaches.

A recent report from DHL has examined last year’s major supply chain challenges to spot potential trends for 2019. Some of the key supply chain disruptors:

Trade flow – U.S. withdrawal from trade agreements including the Trans Pacific Partnership (TPP) and the North American Free Trade Agreement (NAFTA), along with continuing confusion on Brexit-affected supply chains, contributed to uncertainty.

Cyber security – In 2018, a total of 65 cyber attacks directly impacted supply chain assets; among them, 10 involved manufacturing actors, six affected airports or airlines, five occurred at couriers or postal services, five at ports or shipping companies, and two applied to railways.

Extreme weather conditions – Most significantly, wildfires, drought, low water levels, and melting ice all contributed to operational impacts.

Looking ahead, the report highlights 10 top trends to watch:

  • Trade wars drive network restructuring
  • Rising demand and fragile supply create critical raw material shortages
  • Recalls and safety scares put quality under scrutiny
  • Climate change impact heats up
  • Tougher environmental regulations make polluters pay
  • Economic uncertainty and structural change put suppliers under threat
  • Cargo caught up in industrial undress
  • Hazardous transport: container ship fires
  • Battles at the border to increase wait times
  • Drones strike a blow to aviation safety

Click here to download the report (free with registration).

Want to get out in front of potential supply chain issues? DRI’s newly released online Business Continuity for Supply Chain Management (BCP Supply) course covers strategies for managing business continuity in your supply chain and teach you how to apply supply chain management (SCM) to your business continuity management (BCM) program. The course’s multimedia format offers dynamic, interactive content that will engage you and make web-based learning more fun and effective than ever before. Click here for more information.

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