BSI publishes analysis of global supply chain risks
- Published: Wednesday, 24 April 2019 08:17
BSI has identified five major themes that are most likely to impact the supply chain through 2019; these are described in the SCREEN Global Intelligence Report: Top Potential Supply Chain Trends for 2019.
The five themes are:
- Revision of the Minimum Security Criteria under the US Border Protection's Customs-Trade Partnership Against Terrorism (CTPAT);
- Supply chain growth in Africa increasing exposure to varying risks;
- Ongoing mass migration posing both security and corporate social responsibility risks;
- Dramatic shifts in politics including those in Brazil, the US-China trade dispute, and uncertainty over Britain's departure from the European Union;
- The continued threat to supply chains posed by cyber security issues.
BSI also identified several other key trends in supply chain risk from 2018 which may continue this year. These include:
- Food and beverage remains the top commodity stolen;
- Metal has now entered the top five commodities stolen worldwide;
- Labour strikes were the most frequent cause of disrupted manufacturing operations.
Jim Yarbrough, Global Intelligence Program Manager at BSI, said: "We're seeing key shifts to global supply chains this year, driven by quite dramatic changes in the geopolitical landscape. The concern is that as supply chains change – with Chinese companies moving operations to Africa, for example, or the US sourcing goods from other Southeast Asian nations – major implications will also evolve.
"Increased exposure to labour exploitation, terrorism, corruption and natural disasters must be a consideration for companies making changes to their supply chain, and best practices must be maintained in order to prevent threats to business continuity or corporate social responsibility."