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Business Shifts & Weather Major Tech Supply Chain Disruptors

Supply chain risks come in all shapes and sizes. Unfortunately, some are man-made while others are created by the vagaries of weather and other environmental events.

“The earthquakes that impacted southern Taiwan and Japan in the first half of the year, and the bankruptcy declaration of Hanjin Shipping caused considerable disruptions to global supply chains.  Also, 2016 saw a higher frequency of low impact disruption events over the previous year. Business-related events such as mergers and acquisitions, business sale and reorganization/management change were most common events notified,” said Shahzaib Khan, director of EventWatch at Resilinc. 

Although most cannot be predicted, knowing sooner and spotting trends can help. To allow organizations do that, Reslinc recently published its 2016 supply chain events annual report which summarizes and analyzes nearly 1,500 unique supply chain notifications and alerts generated by its EventWatch 24X7 global event monitoring, alert, and analysis service over the past year.

 This year, supply chain pros were increasingly aware of the importance of understanding how business shifts can lead to supply chain disruption.  “You start to feel impact of a weather event in weeks or days but with business changes the impact shows up in three to nine-month time zone and trickle through organization,” Bindiya Vakil, CEO and founder of Resilinc told EBN. “It can have a big and lasting impact to organization.” A leadership shift at the top of a strategic partner could lead to changes in business direction that put critical parts send in strategic products in short supply, she added.

Further, the changing political landscape in the United States and elsewhere are likely to cause ripples in the supply chain.  President Trump, for example, has taken aim at a variety of topics, from the Dodd-Frank conflict minerals reporting requirements to tariffs, the Trans Pacific Partnership (TPP), and North America Free Trade Agreement (NAFTA). “We have a long list of things that Trump proposed during the pre-nomination campaign,” Vakil said. “Frankly, we know that the supply chain is very interconnected because supply chains are so many tiers deep. With tariffs, for example, OEMs could get badly impacted and it could really hurt consumers and every player in the supply chain.”

Particularly for the electronics and high-tech supply chain, events both natural and man-made had big impacts. Click on the image below to start a slideshow of industry-specific results of Resilinc’s annual supply chain events report to see which were most common and costly.

2016 Resilinc EventWatch High-Tech Results

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

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