Today’s economy relies on the smooth operation of sophisticated supply chains. Yet supply chains are vulnerable. Transportation delays, theft, natural disasters, weather, cyber-attacks and unexpected quality issues can disrupt cargo flows, creating short-term costs and delivery challenges. And shifts in local, national and international trade and policies can upset established supply chains. Here are the top 10 threats to global supply chains in 2019 predicted in a new report by DHL:
1. TRADE WARS Global trade tensions have led to new tariffs on a wide range of consumer products and industrial components.
2. RISING DEMAND AND FRAGILE SUPPLY CREATE RAW MATERIAL SHORTAGES While companies are increasingly pursuing regional manufacturing strategies for finished products, the production of many key raw materials remains highly globalized.
3. RECALLS AND SAFETY SCARES PUT QUALITY UNDER SCRUTINY In highly regulated sectors such as pharmaceuticals, airplanes, and medical devices, compliance and quality control is likely to rise, driven by wider public awareness and stricter enforcement.
4. CLIMATE CHANGE IMPACT The changing climate is likely to have wide-ranging effects on global supply chains.
5. TOUGHER ENVIRONMENTAL REGULATIONS In moves to tackle climate change, local air quality, and other forms of pollution, authorities around the world are introducing new regulations.
6. ECONOMIC UNCERTAINTY AND STRUCTURAL CHANGE The global trade war, uncertainty over Brexit, and stricter environmental regulations could become driving factors in putting financial pressure on lower tier industrial suppliers.
7. CARGO CAUGHT UP IN INDUSTRIAL UNREST Industrial action is a perennial risk in transport operations.
8. HAZARDOUS TRANSPORT A number of container ship fires and accidents early in 2019 highlighted what may become more commonplace occurrences.
9. BATTLES AT THE BORDERS INCREASE WAIT TIMES The migration influx to Western Europe and ongoing migrant caravans traveling to the U.S. has increased many countries’ focus on physical border security.
10. DRONES STRIKE A BLOW TO AVIATION SAFETY Airport disruptions related to air traffic safety present a greater risk of disruption to aviation logistics operations.
The full report (March 2019) is available free when you click the link above, but you must provide your name, email, etc., to access it.