Wednesday 18th Sep 2019 - Logistics Manager Magazine

Top supply chain risks for 2019

BSI has found the top supply chain  risks for 2019 to be the revision of the Minimum Security Criteria under the US Border Protection’s Customs-Trade Partnership Against Terrorism (CTPAT), supply chain growth in Africa, mass migration, political shifts and cyber security issues, it says in its “Supply Chain Risk Insights Report”.

The report found that the revised criteria for CTPAT will mean that companies will need to undertake new efforts to achieve supply chain security and mitigate emerging risks.

And with the increasing movement of supply chains to Africa will be more cost effective as labour is cheaper than that of manufacturing products in China. BSI warns that this also signals for increased risk.

Mass migration continues to pose a risk, says BSI and businesses must contend with the double-edged challenge of security and corporate social responsibility risks. BSI recommends that companies develop a more thorough understanding of their supply chain to truly assess the risk of migrant labourer exploitation.

Likewise, shifts in political ideology in the governments of Brazil, Mexico, the United Kingdom, India, and the United States are set to impact supply chains worldwide. And finally, cybersecurity remains an issue.

“We’re seeing key shifts to global supply chains this year, driven by quite dramatic changes in the geopolitical landscape,” said BSI global intelligence program manager, Jim Yarbrough. “The concern is that as supply chains change – with Chinese companies moving operations to Africa, for example, or the US sourcing goods from other Southeast Asian nations – major implications will also evolve.

“Increased exposure to labour exploitation, terrorism, corruption and natural disasters must be a consideration for companies making changes to their supply chain, and best practices must be maintained to prevent threats to business continuity or corporate social responsibility.”

The report also noted several key trends in supply chain risk from 2018. Food and beverage remain the top commodity stolen and mental is now one of the top five commodities stolen worldwide. Poor working conditions led as the top labour violation recorded last year and manufacturing operations were most frequently disrupted by labour strikes.