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The World Economic Forum, in collaboration with Kearney and building on data provided by Everstream Analytics, has developed the ‘Global Value Chain Barometer’ to help leading organizations anticipate vulnerabilities in their global supply chain.

The Global Value Chain Barometer is a quarterly news bulletin aimed at giving manufacturing and supply chain executives an overview of global value chain disruption levels. The barometer has two sections.

The first section plots three megatrends – climate change, geopolitical tension and technological step-change – that are the main drivers of disruption. As operational disruptions are often symptoms of the underlying megatrends (e.g., congestion caused by Covid-19-related lockdowns; production stop due to flooding), they are tracked separately on the bottom of the first page of the Barometer. For both the megatrends and operational disruptions, the barometer offers a short digest, highlighting main disruptive events and their expected impact on value chains. The first section also features insights on most frequent and most impactful disruptions within the last quarter.

The second section of the barometer provides an outlook on expected developments and impacts of current disruptions over the next six months.

Based on this outlook, the Barometer identifies leading strategies for manufacturers on how to prepare for these developments, drawing from the Resiliency Compass, a framework that highlights resilience building strategies around eight demand- and supply side dimensions.

Disruptive events are identified through the application of artificial intelligence, assigned to a megatrend, and scored based on their severity. For every month and megatrend, the severity scores of all events are summed up to give an indication of the overall disruption level of a given month. Insights are regularly derived from this data to provide short digests. Furthermore, they identify trends to give a strategic outlook and highlight key mitigation strategies from the Resiliency Compass strategy playbooks.

More details.

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