Advice: How to build supply chain resilience in volatile times Written by Ian Wylie Tuesday 07 February 2023 Share Share to LinkedIn Share to Facebook Share via email With freight rates fluctuating dramatically and suppliers liable to go bust overnight, it’s more important than ever for consultants to help clients build supply chain resilience When trends in freight costs look like this, it’s hard to build supply chain resilience. This chart (from Statista.com) shows that costs of shipping containerized freight from China to Europe increased significantly between January 2019 and November 2022, before dropping dramatically during 2022. Source: Statista What do such trends mean for consultants and their clients? The Business Continuity Institute (BCI) reports that the level of supply chain disruption reported by organisations is still more than twice as high as pre-pandemic levels. Almost half of respondents said they’d experienced issues with their closest “Tier 1” suppliers during 2022, while a quarter experienced disruptions at the Tier 2 level. Economic slowdowns, talent shortages and geopolitical conflicts such as Russia’s invasion of Ukraine and US-China tensions mean there are still many challenges ahead for supply chains. And yet the BCI report warned that businesses were also displaying a level of “overconfidence” – unchanged from pre-pandemic levels. Just one in three organisations had checked their Tier 1 suppliers’ business continuity plans. Fewer than six in ten firms reckoned their key suppliers had business continuity plans in place, putting the whole supply chain at risk. Managing supply chain disruption in the wake of Covid-19 Management in a crisis: derisking supply chains amid war and rising costs Keep reading to learn how consultants view supply chain threats Login or register below for Free Instant Access Login If you are already registered as a CMI Friend, Subscriber or Member, just login to view this article. Confirm your registration Login below to confirm your details and access this article. Sign in with email Email remember me remember Forget? Please confirm that you want to switch off the "Sign in with email" remember me feature. Yes No Register for Free Access Not yet a Member, Subscriber or Friend? Register as a CMI Friend for free, and get access to this and many other exclusive resources, as well as weekly updates straight to your inbox. You have successfully registered As a CMI Friend, you now have access to whole range of CMI Friendship benefits. Please login to the left to confirm your registration and access the article. Advice Looking for advice and guidance? Whether you are looking for topical tips or information, you can find the latest advice and guidance from the CMI team here. Members See More CMI Members have access to thousands of online learning and CPD resources. Learn more about our membership benefits Join The Community CMI offers a variety of flexible membership solutions, tailored to your needs. Find out more and get involved in the CMI community today.
