What are the challenges in global supply chain risk analysis?

We have lots of examples during the last 2-3 years, such as wars, commercial disputes, major logistic issues and so on. It is most of the times impossible to foresee these events, being therefore more and more critical along the time the reaction capacity rather than the risk assessment in advance; this year for instance we are having to cope with transit times from Asia having practically doubled due to the Red Sea crisis, by beginning of the year (so just 6 months back) noone could have guessed that vessels would be going around the Cape of Good Hope on normal basis;

Global supply chain risk analysis presents several challenges due to the complexity and interconnectedness of international trade. One of the primary difficulties is the variability and unpredictability of risks across different regions, including political instability, economic fluctuations, and natural disasters, which can disrupt supply chains at multiple points. Additionally, the diversity of regulations and standards across countries necessitates continuous monitoring and compliance efforts. Communication barriers and differences in technological capabilities among global partners can hinder effective risk management and timely response.

Earthquakes, hurricanes, floods, and other catastrophic events can halt production, damage infrastructure, and lead to transportation delays. As someone responsible for managing these risks, you must develop contingency plans that enable your supply chain to remain resilient in the face of such disasters.

Geopolitical tensions indeed play a significant role in shaping the dynamics of global supply chains, here are some recommendations: - Trade disputes can result in the imposition of tariffs and duties, increasing the cost of importing and exporting goods. - Businesses may need to shift their supply sources to countries with more favorable trade terms, leading to changes in supplier relationships and logistics.

Supply Chain Risk involves assessing and solving all types of risks relating to supply sources. This includes coordinated efforts to help identify, monitor, detect and mitigate threats. Cybersecurity threats, climate change, and evolving consumer demands further contribute to the intricacies of supply chain dynamics. Such threats challenge the smooth functioning of the supply chain system Important challenges are: Geopolitical Risks -Global Political Unrest Economic Challenges and Dealing with Inflation Disruptions by Climate Change and Complying with ESG Standards Evolving Cyber Threats Lack of Sustainability

Atender à regulamenta??o é o mínimo que se espera de uma empresa ética. Além disso, é necessário considerar os riscos, as condi??es locais e, principalmente, os requerimentos dos clientes, que no mundo digital est?o cada vez mais exigentes e conscientes de seu papel no consumo responsável. Lembre-se de que seu cliente deseja que a cadeia de suprimentos seja responsável e você, muitas vezes, é o rosto dessa cadeia.

Stay informed about international trade regulations and sanctions to ensure compliance and avoid legal issues. Work with legal experts to navigate complex regulatory environments and manage compliance risks.

Desafortunadamente hoy en día muchas empresas han perdido su credibilidad y no les importa afectar su buen nombre, ni pagar altos costos en multas, prefieren declararse en banca rota.

In my opinion we have to respond quickly to changes by reallocating resources and relying on short-term contracts. Moving to flexible planning to address uncertainty and keep more safety stocks on hand.

Multi-shoring, manufacturing and supplier networks, modes of transport and logistics operations are the 4 dimensions of the supply chain. Diversification must be proactive and, above all, sustainable.

I think that we Have to choose strategics places, always looking for economy; change climates; and business development, the companies want to reach high results but the most forget to invest in technologies that improove the life of comunity around of them

I concur that cybersecurity is indeed a critical concern in the digital age, particularly for global supply chains. Cyberattacks pose significant risks, from compromising sensitive data to disrupting logistics software systems, potentially resulting in severe financial losses. It is imperative to safeguard supply chain digital infrastructures through robust security measures, regular audits, and comprehensive staff training. Proactively addressing these threats is essential to maintaining the integrity and reliability of global supply chains.

In general, technological advances in procurement enable benefits such as faster transactions and smoother global collaboration, but they undoubtedly also generate increased procurement risks from cyberattacks. Therefore, in the age of digitalization, companies should definitely invest in cybersecurity to protect their digital assets and business processes from potential threats. Even in leading companies with advanced cybersecurity systems, problems can arise when employees use weak passwords such as "1234".

Tenemos actualmente mucho talento que conocen y saben de seguridad de datos el problema que no tienen un oportunidad de desempe?ar todo ese potencial en una organización, si se les diera oportunidades no estaríamos hablando ahora de "Amenazas de ciberseguridad", si solo cambiáramos nuestra manera de pensar no tendríamos que estar preocupados que se vulneren nuestros datos.

Forecasting demand, costs & market conditions can be challenging due to the unpredictability of economic fluctuations. Therefore in order to predict different economic scenarios, we must use advanced analytics. These fluctuations?may cause supply chain disruptions, impacting procurement and transportation expenses. Therefore, we must create backup plans so that we can react quickly to changes in the global economy.

As a professional in the sales and supply chain sector, I’ve noted that a key challenge in global supply chain risk analysis is the unpredictability of geopolitical events. These disruptions can be hard to foresee and manage. To navigate this, companies need a more agile and resilient approach, using advanced data analytics and fostering strong partnerships with suppliers. This helps in anticipating disruptions and crafting effective contingency plans. Transparent and proactive engagement with supply chain partners is essential, not just for risk management but for building a robust network that thrives amidst uncertainty.

Inaccurate data across supply chain including distributors and suppliers can lead to problems in managing inventory effectively and responding promptly to market fluctuations. To enhance transparency and ensure data accuracy, it's essential to focus on integrating and standardizing data across the supply chain.

Gemba. The best way to ensure transparency of supplier provided information is to go see for yourself as often as feasible. ? Have a plan when you go to a supplier’s manufacturing site ? Do not be led around to what they want to show you ? Know what info you will validate and what you need to see to validate it ? Be transparent: Let them know in advance what areas you need to have access to during the visit ? Leverage Teamwork: If Supplier Quality or another teammate will be in the area between your visits; request to allow them access to stop in, and have them re-evaluate any area you are monitoring to make a comparison An added side benefit is building knowledge about your suppliers’ operations that will aid in future problem-solving.

In today's interconnected world, geopolitical tensions are an ever-present risk that can profoundly affect global supply chains. By staying informed, diversifying suppliers, designing flexible supply chains, and implementing robust risk management strategies, business managers can better navigate these challenges.

Recognizing changes in supplier behavior is now critical to identifying financial risk. The old model of collecting and evaluating supplier financial metrics has lost its effectiveness. Companies can go from relatively healthy to struggling in less than a quarter. So it’s imperative today that Buyers know their suppliers to a degree to notice and question potential red flags stemming from changes to behavior patterns. Example: A vendor with a pattern of high OTD% is trending lower. When questioned, the answers don’t align with the Buyer’s knowledge of the vendor’s operations. I’ve seen this indicate the supplier is low in cash and paying their suppliers in advance. Other red flags can be found similarly, but baseline knowledge is key.