CSCMP's Supply Chain Quarterly
November 16, 2018
Forward Thinking

Switzerland boasts the world's most resilient supply chains

The alpine nation topped FM Global's annual Global Resilience Index, which ranks 130 countries and territories on their ability to bounce back from a supply chain disruption.

Switzerland: home of precision watches, exquisite chocolate, and, according FM Global, the world's most resilient supply chains. The country ranked at the top of the commercial property insurance and business risk consulting firm's third annual Global Resilience Index.

FM Global designed the index to rank the resilience of 130 countries and territories (including the United States, which is split into three regional zones) in the face of supply chain disruption. Countries are judged on nine drivers of supply chain risk, which are grouped into three categories: economic, risk quality, and supply chain factors. The insurance company then combines the factors to create a composite index. Scores are on a scale of 0 to 100, with 0 representing the lowest resilience and 100 representing the highest level of resilience.

What sets Switzerland apart? In part, it's the country's resistance to fluctuations in fuel prices. According to FM Global, declining oil prices caused Norway, an oil producer, to drop to second place, which allowed Switzerland to claim the top spot. Switzerland also ranked number 1 in terms of supply chain metrics, as it had a low level of corruption, excellent infrastructure, and local suppliers that were judged second in quality only to Japan's. The country is also economically stable, which outweighs some of its exposure to naturally occurring hazards, such as storms.

The 10 most resilient countries (descending order):

1. Switzerland
2. Norway
3. Ireland
4. Germany
5. Luxembourg
6. Netherlands
7. United States Region 3 - Midwest
8. Canada
9. Australia
10. Denmark

The 10 least resilient countries (ascending order):

130. Venezuela
129. Dominican Republic
128. Kyrgyz Republic
127. Nicaragua
126. Mauritania
125. Ukraine
124. Egypt
123. Algeria
122. Jamaica
121. Honduras

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