Annual Report
Why should you read the report? Because global supply chain risk events increased 36% in 2018, according to Resilinc’s Annual EventWatch Report. And you need to find out more details.
The report finds that many supply chains may not be adequately prepared to handle disruptions.
For corporations managing complex supply chains, 2018 provided many familiar challenges such as factory fires, extreme weather events, earthquakes and mergers and acquisitions. Resilinc’s newly released 2018 EventWatch Report reveals that not only have global risks increased overall, but volatile and uncertain geopolitical conflicts—including the U.S.-China trade conflicts and Brexit—pose some of the most potentially costly and disruptive supply chain impacts.
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Resilinc EventWatch issued 2,696 event notices for a 36% increase year over year which averages about seven per day. Of these, Resilinc classified 907 events as those impacting its customers’ mapped supplier sites, and therefore requiring an impact assessment.
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Illustrating that many global supply chains may not be adequately prepared when adverse impacts do occur, Resilinc’s data showed that of the 12,558 manufacturing supplier sites that were in the zones of impact of potentially disruptive events, only 12% had an alternate manufacturing site available. In Life Sciences, only 4% had an alternate site available; in Food & Beverage, 3%; and in Aerospace & Defense, 0.4%.
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Reflecting the geopolitical turmoil of 2018, Regulatory Change events grew by 640%, while Protests/Riots increased 370%.
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The top 5 most reported events were: Mergers & Acquisitions; Factory Fire/Explosion; Reorganization/Management Change; Business Sale or Spinoff; and Factory/Shutdown Disruption.
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Changes in ownership, management or business structure (reflected in the event types: Mergers & Acquisitions; Reorganization/Management Change; and Business Sale or Spinoff) accounted for 30% of 2018 events. Such events often have impacts that do not manifest immediately but can eventually lead to serious disruptions and even a total loss of supply as strategic decisions are made around exiting non-core business lines or selling business units.
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2018’s top 5 most destructive natural disasters were: the January North American Blizzard (also known as the bomb cyclone); Taiwan’s 6.4-magnitude earthquake in February; Hurricanes Florence (U.S.) and Typhoon Mangkut (Philippines, Taiwan, China), which both occurred in September; and October’s Hurricane Michael in the U.S.
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