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Safe Supply Chain Destinations: The Geography of Resilience

In managing risk, where supplier partners and manufacturing plants are located is a key factors.  A new report looks at the vulnerabilities of various countries to quantify supply chain resilience around the world.

FM Global's 2015 FM Global Resilience Index is compiled annually for FM Global, a large commercial property insurer, by analytics and advisory firm Oxford Metrica.  The company creates the ranking, which includes 130 countries and territories, by combining three core factors (economics, risk quality, and qualities of the supply chain itself). The drivers of these factors include GDP per capita, political risk, vulnerability to oil shortages and price shocks, exposure to natural hazards, quality of natural hazard risk management, fire risk, control of corruption and the quality of infrastructure and local suppliers, FM Global said.

“Business leaders who don't evaluate countries and supply chain resilience can suffer long-term consequences,” said Bret Ahnell, executive vice president, operations, FM Global. “If your supply chain fails, it can be difficult or impossible to get your market share, revenue and reputation back. The FM Global Resilience Index is designed to help business leaders stay in business by making informed decisions about where to place and maintain global supplier facilities.”

Some highlights include:

  • For the second year in a row, Norway gained the top ranking, gaining top marks for economic productivity, control of corruption, political risk, and resistance to an oil shock.
  • Venezuela took the lowest spot on the list, with notable risk associated with economic, political, and geological changes.
  • Taiwan, a well-known force in the electronics industry, had the most notable rise in the ranking from number 52 to 27. In the past year, the country has improved its commitment to risk management.
  • Ukraine and Kazakhstan took the largest drops in ranking (falling 31 positions each). ” [The] worsening political risk and a weakened infrastructure are the main negative factors affecting the rank of Europe's largest country,” the report said of Ukraine.

Take a look at the infographic below for more results. Then, let us know in the comments section which countries are prime locations for your business.

1 comment on “Safe Supply Chain Destinations: The Geography of Resilience

  1. apek
    April 3, 2015

    Thanks for this Data.

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