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DHL details supply chain risks

DHL’s Resilience360 has released its first annual risk report, examining last year’s major supply chain challenges while identifying trends that will shape the risk landscape in 2019.

The report is based on risk and incident data, as well as on the experience and insights of in-house analysts.

Key supply chain disruptors in 2018 included uncertainties concerning trade flows, cyber security incidents, and climate change in combination with extreme weather conditions. Trade uncertainty increased due to disputes between the USA and other countries as well as the issue of the UK’s withdrawal from the EU.

In terms of cyber security, there was a rising number of incidents involving supply chain and transport infrastructure in 2018; climate change presented a myriad of sever weather-related disruptions including wildfires, droughts and low water levels.

According to the report, Resilience360 recorded the most incidents in Germany and the UK. Cargo theft, industrial fires and explosions, and train accidents were highlighted at high-impact events. In Europe, civil unrest accounted 12.9 percent of the incidents, as the ‘yellow vests’ protests in France and Belgium disrupted highways, ports, border crossings and access roads.

In 2019, the report said that, in addition to ongoing global risks like international trade tensions, companies may also face additional costs and uncertainty due to raw material shortages, safety scares or tougher environmental regulations.

“Modern supply chains are vulnerable. Transportation delays, theft, natural disasters, inclement weather, cyber attacks and unexpected quality issues can disrupt cargo flows, creating short-term costs and delivery challenges,” explained Shehrina Kamal, director risk intelligence at Resilience360.

www.resilience360.dhl.com

www.dhl.com

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