The Taiwan earthquake was among the top five most destructive natural disasters © AFP/Getty Images
The Taiwan earthquake was among the top five most destructive natural disasters © AFP/Getty Images

Supply chain alerts up 36% in 2018

Will Green is news editor of Supply Management
14 March 2019

A total of 2,696 supply chain alerts were issued in 2018, up 36% on the previous year, according to Resilinc EventWatch.

Resilinc said the total, equating to seven per day, included 907 events that impacted its customers’ mapped supplier sites and therefore required an impact assessment.

Data showed 21,152 suppliers and 58,191 supplier sites, producing 552,950 parts across multiple supply chain tiers, were potentially affected.

The company said regulatory change events grew by 640% and protests/riots increased by 370%, “reflecting the geopolitical turmoil of 2018”.

The top five most reported events were mergers and acquisitions, factory fire/explosion, reorganisation/management change, business sale or spinoff, and factory shutdown/disruption.

Resilinc said changes in ownership, management or business structure, including M&A and company sales, accounted for 30% of events in 2018.

“Such events often have impacts that do not manifest immediately but can eventually lead to serious disruptions and even a total loss of supply as strategic decisions are made around exiting non-core business lines or selling business units,” said the report.

The top five most destructive natural disasters in 2018 were January’s North American “bomb cyclone” snow blizzard, Taiwan’s 6.4 magnitude earthquake in February, Hurricane Florence (US) and Typhoon Mangkut (Philippines, Taiwan, China), both in September, and Hurricane Michael (US) in October.

Together these events impacted more than 24,000 supplier sites with an average recovery time of 19-25 weeks.

Resilinc said that of the 12,558 manufacturing supplier sites in the zones of potentially disruptive events, just 12% had an alternate manufacturing site available. In life sciences the figure was 4%, in food and beverage it was 3% and in aerospace and defence it was 0.4%.

Bindiya Vakil, Resilinc CEO, said: “With the global supply chain so fraught with uncertainty and instability, supply chain professionals should be examining where sole-source manufacturing suppliers make their supply chains vulnerable and how they can work with suppliers to identify and qualify alternate manufacturing sites.

“This is just one example of the opportunities to reduce risks of disruption and improve the overall resiliency of the supply chain systems that are at the heart of companies’ performance and profitability.”

Resilinc’s EventWatch is a global event monitoring, alert and analysis service, involving more than 100,000 news sources in 53 languages and including social media, blogs and company websites.

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