Leaner, larger supply chains 'vulnerable'

16 January 2008
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16 January 2008

Supply chain vulnerability has been pinpointed as one of four key global risks for the next decade.

A report from the World Economic Forum (WEF) said systemic financial risk, food security and energy are the other three emerging issues that will shape the next 10 years. Published this month, Global Risks 2008 is based on input from more than 100 business leaders, scientists and academics who form the WEF's global risk network.

The report said while technologies have made supply chains more efficient, and the growing number of global chains has been good for the world economy, the larger and leaner the chain, the more vulnerable it is.

"There is increased vulnerability to disruption of the supply chains that hold the global economy together. Because of complexity, supply chain management problems are not limited to a single enterprise or industry," said David Nadler, vice-chairman of Marsh & McLennan Companies, at the report's launch in London last week.


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