We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Index identifies potential supply chain risk in 130 countries and territories
Forward Thinking

Index identifies potential supply chain risk in 130 countries and territories

June 30, 2016
Susan Lacefield
No Comments

Last week, Japan's Ministry of Finance reported that Japan's exports declined 11.3 percent year-over-year for May, partly because of supply chain disruptions caused by the Kumamoto earthquake. This is just one recent example of the repercussions a natural disaster or other disruption event can have on an entire supply chain. It also highlights how important it can be to identify where supply chains are especially vulnerable to risk.

To help companies with that evaluation, the business-risk consulting firm FM Global recently released its third annual Global Resilience Index, which ranks the resilience of 130 countries and territories in regard to supply chain disruption. But while it's interesting that Switzerland was found be more resilient than Norway, can executives actually use this information to help design supply chains that are less subject to disruption?

According to Eric Jones, operations vice president, global manager and business risk consulting at FM Global, the answer is yes. "The FM Global Resilience Index helps companies learn more about potential supply chain-related vulnerabilities in regions or specific countries where they do business today or where they might invest in the future," Jones wrote in an email. "It can help trigger any preventive measures one requires to ensure a company's prosperity over the long term."

Specifically, the index can help companies select locations for new sites and facilities and evaluate established supply chains, says Jones. It can also help companies evaluate potential suppliers and identify how vulnerable their customers are to risks.

The Index includes assessments for nine factors in three different categories: economic, risk quality, and supply chain. Economic factors include gross domestic product, political risk, and vulnerable to an oil "shock." Risk quality factors include exposure to natural hazards, the country's commitment to reducing natural hazard risks, and the country's commitment to fire-risk improvement. Finally, the three supply chain factors include control of corruption, infrastructure, and local supplier quality.

"Using the nine key drivers measured in the index, supply chain executives and risk managers can identify specific risks that may be associated with a country that could impact a current or prospective supplier," Jones said. It could then take steps to mitigate that risk, such as contracting with an additional supplier in another region or working with that supplier on contingency plans.

Global
  • Related Articles

    More than 250 volunteers pitch in at Stop Hunger Now event at CSCMP Annual Conference

Susan Lacefield is Executive Editor of CSCMP’s Supply Chain Quarterly.

Recent Articles by Susan Lacefield

Fred Smith is not worried about Amazon

Using predictive analytics to make cycle counting better

CSCMP EDGE keynote challenges attendees to rethink sustainability and the circular supply chain

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing