Dive Brief:
- A record number of risk events impacted supply chains in the first half of 2018, according to data collected by supply chain visibility provider Resilinc. The company recorded 1,069 events globally January through June, with more than 300 directly affecting continuity of supply.
- Mergers and acquisitions were the most common event type in North America, followed by factory fires and extreme weather.
- While extreme weather was the most impactful event type, according to Resilinc, factory fires were the most frequent risk event recorded in the first half of 2018.
Dive Insight:
"2018 has been a difficult year for global companies due to ongoing operational challenges that have curtailed growth plans and negatively impacted margins," said Resilinc CEO Bindiya Vakil in a press release.
In earnings reports this year, several companies have called out supply chain and freight costs as impacting their margins. In the latter half of the year, tariffs have emerged as a cost concern, with companies considering alternative locations for production and sourcing.
Extreme weather events occurred 41 times in the first half of 2018. In the U.S., the "Bomb Cyclone" created disruptions to logistics across the East Coast.
The report from Resilinc, however, does not yet take into effect hurricanes and wildfires that battered the U.S. in the second half of the year. Hurricane Florence closed ports and disrupted deliveries in September.
Resilinc noted hundreds of disruptions with indirect impact to supply chains, including tariffs, price fluctuations and cyber attacks.
