World Economic Forum
Overview: Global supply chains and transport networks form the backbone of the global economy, fuelling trade, consumption and economic growth. Disruptions to supply chains can prove costly, as highlighted most recently by Hurricane Sandy. According to research conducted by Accenture, signifcant supply chain disruptions have been found to cut the share price of impacted companies by 7% on average.
The World Economic Forum’s Supply Chain Risk Initiative first started exploring systemic risks and vulnerabilities to global supply chains and transport networks in 2011. The initiative’s phase I report, New Models for Addressing Supply Chain and Transport Risk, launched at the World Economic Forum Annual Meeting 2012 in Davos-Klosters, examines the systemic supply chain risk landscape and the possibility of these risks causing serious disruptions to global supply chains. It highlights the need to shift focus from reactive to proactive risk management. At the same time as the launch of this report, the US government launched its Strategy for Global Supply Chain Security, calling for a global multistakeholder dialogue to effectively safeguard supply chains.
Throughout 2012, concerns have remained about external threats to supply chains (such as natural disasters and demand shocks) and systemic vulnerabilities (such as oil dependence and information fragmentation). Additionally, growing concern around cyber risk, rising insurance and trade finance costs are leading supply chain experts to explore new mitigation options. Accenture research indicates that more than 80% of companies are now concerned about supply chain resilience.
