New report examines global supply chain risk management

The development of a highly efficient and deeply integrated global supply chain in recent years has been a great boon to the US economy. However, as a new report from the US-based nonpartisan Reform Institute points out, the acute reliance of many US businesses on the supply chain carries enormous risks that have been largely ignored. Continuing to discount the dangers threatens to bring the economy to a virtual halt in the case of a terrorist attack or natural disaster, says the report.

‘Chain of Perils: Hardening the Global Supply Chain And Strengthening America’s Resilience’ highlights the importance of the global supply chain to the US economy and examines the threats that need to be addressed. The paper also provides recommendations for strengthening the supply chain and preparing for a disruption in the supply chain so that a disruptive event does not destroy businesses and severely damage the wider US economy.

“The global supply chain we have today really is a remarkable achievement,” stated the report’s author, homeland security expert Robert Kelly. “Due to globalization and innovations in shipping, a variety of cargo moves from one corner of the planet to the other in the relative blink of an eye. However, in marveling at ‘just-in-time’ delivery of goods and reaping the economic benefits of the efficient import and export of merchandise, we fail to see the vulnerabilities inherent in this interdependent supply chain.”

Strengthening the supply chain is integral to enhancing the resilience of the United States. Resilience involves the ability of the country to withstand and quickly bounce back from a catastrophic event. Resilience is the primary focus of the homeland security program of the Reform Institute, a nonprofit, nonpartisan public policy organization. The Institute will host a major symposium on the topic of resilience in New York City on March 27 and 28. ‘Building a Resilient Nation: Enhancing Security, Ensuring a Strong Economy’ will feature noted homeland security expert Stephen Flynn of the Council on Foreign Relations along with representatives from the private sector who will discuss what their companies are doing to enhance their resilience and what more needs to be done.

The report can be accessed here (PDF).

•Date: 7th March 2008• Region:US •Type: Article •Topic: Operational risk
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