Tag: infrastucture

OM in the News: Biggest Supply Chain Threats for 2026

 IndustryWeek (Jan. 12, 2026) outlines four critical events poised to significantly impact the supply chain this year based on a research study by Evergreen Analytics:

  • Geopolitical fragmentation and the strategic use of trade regulations.
  • Extreme weather intensification.
  • Critical infrastructure aging and failure.
  • Cyberattacks on logistics.

Geopolitical fragmentation and the strategic use of trade regulations, ranked as the most notable risk for 2026 supply chains, giving it a “threat level” score of 97%. Abrupt geopolitical shifts have the potential to upend political alliances, alter trade relationships, create regional uncertainties and disrupt logistics networks.

In addition, rapid tariff and policy adjustments have become the new normal for supply chain management. From 2023 to 2025, export controls that caused severe disruptions doubled, and other trade restrictions increased 167%.

The next risk, extreme weather intensification, was given a “threat level” score of 93%. As the frequency and severity of these weather events continues to climb, firms are encouraged to  advance climate modeling for procurement, supply chain and logistics operations. They should also prioritize geographic diversification, increased inventory buffers and flexible logistics networks that can rapidly reroute around weather-impacted areas..

Third, critical infrastructure aging and failure, received a “threat level” score of 81%. Compromised infrastructure and transportation networks, combined with the previous risk of extreme weather, pose a real threat to supply chain operations. The Infrastructure Moment report by McKinsey & Company estimates that $106 trillion in investments, including $36 trillion for transport and logistics, will be needed to meet the need for updated infrastructure through 2040.

It is predicted that at least one multibillion dollar disruption because of failing infrastructure will occur this year. This implies that supply chain managers must develop comprehensive infrastructure risk assessments that go beyond their immediate suppliers to include the broader transportation and utility networks their operations depend on.

Lastly, cyberattacks on logistics sits at a “threat level” of 70%. Between 2021 and 2025, there was a 965% increase in attacks on logistics operations. It is  projected that cyberattacks on logistics operations will double this year. The five industries that experienced the most cyberattacks last year are: Manufacturing, Electronics,  Automotive,  Food & Beverage, and Logistics.

Classroom discussion questions:

  1. Compare these threats to supply chains to the ten discussed in Table 11.4 (page 474) in your Heizer/Render/Munson text. Which match?
  2.  Why do you think geopolitical issues is ranked first in this study?

 

OM in the News: The EV Revolution’s Missing Link

While EVs can be powered up at home, a fast-charging infrastructure is essential to getting beyond their current limited adoption, writes The Wall Street Journal (Feb. 27-28, 2021). But there are problems: too few charging stations, too much demand at the stations that are available, broken chargers, confusing payment systems, exorbitant electricity rates, and uncertainty over how long cars need to charge.

So far, only Tesla has offered a reassuring pitch about conveniently and reliably recharging on the go. Tesla built a nationwide fast-charging infrastructure for its vehicles even before its cars were widely adopted. But this technology doesn’t work on non-Tesla cars. While Tesla offered “open source” charging technology, using it meant signing off on terms the world’s biggest automakers were unwilling to accept. They instead collectively adopted a competing standard in the U.S., making their vehicles incompatible with Tesla’s. 

Drivers of EVs who wish to take them on road trips need to plan ahead carefully

Building the requisite charging infrastructure for the rest of the EV universe will be expensive. The U.S. government has proposed building a network of 500,000 chargers in 5 years, which would cost billions–and probably won’t be profitable. There are currently about 128,000 gas stations in the U.S., but only about 5,000 fast-charging stations. The result is a patchwork of stations is improving but still needs work.

Many stakeholders—from automakers and charging companies to utilities and government agencies—have an interest in a reliable national network of fast chargers. But if the sole source of income for these charging stations is from dispensing electricity, it doesn’t appear they’re a viable business. The average fast-charging station, charging market price for electricity, would take 20-25 years to pay off. Part of the problem is that when in use, a single fast-charging stall can draw the equivalent of a whole neighborhood’s electricity needs. So it can be very expensive to connect a station with up to a dozen individual chargers to the local electrical grid, and secure enough energy supply.

Classroom discussion questions:

  1. How does this problem relate to the Triple Bottom Line discussed in Supp. 5 of your Heizer/Render/Munson text? (see p. 195)
  2. What do you see as the future for EVs in the U.S.? Will it be different in Europe? Why?